Openfire randomly disconnecting users

Openfire has been running smooth in our organization for months now but we have recently increased the userbase. The increase was around 350 users but only anywhere from 100-150 are currently connected at any given time giving us a total of ~410 users conencted at peak times. In the past week or so, at what seems to be random times but it coincides with the peak usage time, random users are getting disconnected from Openfire. The users will reconnect and connect in a loop for various amounts of time. The users all seem to be using Adium but the problem can occur with the Windows Pidgin client also.

We are kind of grasping at straws here trying to pinpoint the root cause. From the debug logs there were/are a lot of these errors:

2014.07.24 19:57:31 org.jivesoftware.openfire.nio.ClientConnectionHandler - [####] inNetBuffer: java.nio.DirectByteBuffer[pos=3803 lim=4163 cap=19341]

2014.07.24 19:57:31 org.jivesoftware.openfire.nio.ClientConnectionHandler - [####] appBuffer: java.nio.DirectByteBuffer[pos=2692 lim=38682 cap=38682]

2014.07.24 19:57:31 org.jivesoftware.openfire.nio.ClientConnectionHandler - [####] Unwrap res:Status = OK HandshakeStatus = NOT_HANDSHAKING

bytesConsumed = 37 bytesProduced = 1

Is this error causing all of our problems and if so is there a fix?

It was also pointed out the Java memory was being taken up at about the same time this was all happening. The Java memory allocated to the server now 3GB. The thought is to increase it but will that do anything?

We are running Openfire 3.7.1 on CentOS.