Yeah, setting up on a 32 bit OS is dicey at best.
I managed it once having to continuously tweak the ram allocation up and down by increments until it worked (there's two different errors: one says it couldn't allocate the RAM, and you go down in MB, the other said it ran out of heap and you go up in MB).
To me it looks like you need to allocate more RAM to the decompile process or you may need more RAM in your machine. (it looks like it gave up after trying to allocate more than ~3GB).
You can also try telling it to use less RAM (in the event that you don't have 3GB available in your machine and can't add any: e.g. a 32 bit OS).
You can freely edit scale, rotation, and translate the X, Y & Z coordinates of Items & Blocks in the model JSON's
I have an example here, with an item extending that JSON here.