--- a/hotspot/src/share/vm/memory/universe.cpp	Tue Nov 09 17:31:18 2010 -0800
+++ b/hotspot/src/share/vm/memory/universe.cpp	Fri Nov 12 09:51:43 2010 -0800
@@ -864,7 +864,8 @@
     // compressed oops for pstack code.
     if (PrintCompressedOopsMode) {
       tty->cr();
-      tty->print("heap address: "PTR_FORMAT, Universe::heap()->base());
+      tty->print("heap address: " PTR_FORMAT ", size: " SIZE_FORMAT " MB",
+                 Universe::heap()->base(), Universe::heap()->reserved_region().byte_size()/M);
     }
     if ((uint64_t)Universe::heap()->reserved_region().end() > OopEncodingHeapMax) {
       // Can't reserve heap below 32Gb.

--- a/hotspot/src/share/vm/runtime/arguments.cpp	Tue Nov 09 17:31:18 2010 -0800
+++ b/hotspot/src/share/vm/runtime/arguments.cpp	Fri Nov 12 09:51:43 2010 -0800
@@ -1328,8 +1328,11 @@
 }
 
 inline uintx max_heap_for_compressed_oops() {
-  // Heap should be above HeapBaseMinAddress to get zero based compressed oops.
-  LP64_ONLY(return OopEncodingHeapMax - MaxPermSize - os::vm_page_size() - HeapBaseMinAddress);
+  // Avoid sign flip.
+  if (OopEncodingHeapMax < MaxPermSize + os::vm_page_size()) {
+    return 0;
+  }
+  LP64_ONLY(return OopEncodingHeapMax - MaxPermSize - os::vm_page_size());
   NOT_LP64(ShouldNotReachHere(); return 0);
 }
 
@@ -1507,7 +1510,13 @@
     }
     if (UseCompressedOops) {
       // Limit the heap size to the maximum possible when using compressed oops
-      reasonable_max = MIN2(reasonable_max, (julong)max_heap_for_compressed_oops());
+      julong max_coop_heap = (julong)max_heap_for_compressed_oops();
+      if (HeapBaseMinAddress + MaxHeapSize < max_coop_heap) {
+        // Heap should be above HeapBaseMinAddress to get zero based compressed oops
+        // but it should be not less than default MaxHeapSize.
+        max_coop_heap -= HeapBaseMinAddress;
+      }
+      reasonable_max = MIN2(reasonable_max, max_coop_heap);
     }
     reasonable_max = os::allocatable_physical_memory(reasonable_max);