Some times we get Error “Java execution failed. Please check the Java Option in the option dialog.” when we preview or validate the template because of insufficient memory allocated for Java run time engine.
To get rid of this error we need to increase the memory heap allocated to Java run time engine.
Go to XML Publisher Add-Ins tab. and then navigate to Tools –> Options –> Preview tab –> Java Option
You can see that Java Option field has -Xmx256M as value, which says that at maximum of 256MB of space can be utilized in run time. Increase 256MB to 512MB or 1024MB to get rid of this issue.
If the issue still persists even after increasing the heap size, then try un-install BI Publisher and re-install in a different location.