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I'm using Ubuntu 10.04 with java:
java version "1.6.0_24"
Java(TM) SE Runtime Environment (build 1.6.0_24-b07)
Java HotSpot(TM) 64-Bit Server VM (build 19.1-b02, mixed mode)
I wouldn't recommend using anything that elaborate in starting a Minecraft server. You'll likely only get a few percentage points of extra performance from all of those extra options, and that's if you're lucky. Instead, my suggestion is something simple like this:
If you want to squeeze out every last bit of performance, try the more complicated one, but add groups of options separately and test after each.
The first one of the two options you gave appears to be Minecraft-specific and changes in-game behavior The second is probably a general Java option, and is tries a different optimization strategy for a particular function.