Is permgen included in -Xmx?

Permanent generation is a separate space allocated via -XX:MaxPermSize=. This is in addition to the heap set with -Xmx.

See the diagram at http://www.oracle.com/technetwork/java/gc1-4-2-135950.html#3.%20Sizing%20the%20Generations|outline "3. Sizing the Generations"

This shows the "Total Size" i.e. Xmx does not count the Permanent generation.

And by the way, JDK 1.4 is quite old. Check the JDK 1.6 options and links for an updated view: http://www.oracle.com/technetwork/java/javase/tech/vmoptions-jsp-140102.html

Nope, permGen space is in addition to main heap (latter capped via -Xmx on Sun VMs)