I just recently found a fix for the infamous "Could not create Java virtual machine error" for minecraft after many hours of suffering. But I have to say it's an ugly fix, and unfortunately it's the only one that's worked so far. It doesn't allow me to login to my minecraft account so I have to play offline all the time. 

If anybody on this forum has a cleaner fix for this problem and/or knows what Notch is going to do about this error and what might be the cause of it, I would greatly appreciate it all. Thanks.

-Ventryx

PS. I am using Java version 6 update 31 if that makes a difference.