OUT of MEMORY . Issue in 64 bit Matlab

hi i am using 64 bit version of matlab on 64 bit operating system windows 7. I am facing "out of memory" issue when i run my code. I have already increased the jave heap size and increase the swap size but still i am facing the same error . my computer specifications are: i am using it on Intel Xeon having 64GB of RAM. Matlab shows following results when I ran 'memory' and 'whos' commands

Maximum possible array: 124730 MB (1.308e+11 bytes)

Memory available for all arrays: 124730 MB (1.308e+11 bytes)

Memory used by MATLAB: 1014 MB (1.064e+09 bytes)

Physical Memory (RAM): 65535 MB (6.872e+10 bytes)

Limited by System Memory (physical + swap file) available.

Name              Size                    Bytes  Class     Attributes
Problem           1x1                 172686122  struct              
cnt               1x1                         8  double              
index             1x1                   1339842  struct              
q            148770x148770            171455800  double    sparse    
x                 1x1                         8  double              
y                 1x1                         8  double

please help me to resolve this issue

[Walter Roberson]

What code are you executing when you get the error?

Which release of MATLAB are you using?