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I'm installing Minecraft on my new computer, but every time I log in and try to connect to a server or single player, it stays on the brown logging in screen, then gives me the out of memory error, and my computer bluescreens. I reinstalled both Java and Minecraft. Last time I tried, when I tried to enter a singleplayer world, I got this error text:

	  Minecraft has crashed!	 
	  ----------------------	 
Minecraft has stopped running because it encountered a problem; Exception in server tick loop
This error has been saved to C:\Documents and Settings\Charlie\Application Data\.minecraft\crash-reports\crash-2012-10-10_08.51.48-server.txt for your convenience. Please include a copy of this file if you report this crash to anyone.

--- BEGIN ERROR REPORT 361ae8d2 --------
Generated 10/10/12 8:52 AM
- Minecraft Version: 1.3.2
- Operating System: Windows XP (x86) version 5.1
- Java Version: 1.7.0_10-ea, Oracle Corporation
- Java VM Version: Java HotSpot(TM) Client VM (mixed mode), Oracle Corporation
- Memory: 209442392 bytes (199 MB) / 519110656 bytes (495 MB) up to 1037959168 bytes (989 MB)
- JVM Flags: 2 total; -Xms512m -Xmx1024m
- Is Modded: Probably not
- Profiler Position: N/A (disabled)
- Player Count: 1 / 8; [gu['rogueginger'/168, l='New World', x=20.50, y=105.62, z=250.50]]
- World New World Entities: 0 total; []
- World New World Players: 0 total; []
- World New World Chunk Stats: ServerChunkCache: 0 Drop: 0
- Type: Integrated Server
java.lang.OutOfMemoryError: unable to create new native thread
at java.lang.Thread.start0(Native Method)
at java.lang.Thread.start(Unknown Source)
at aet.<init>(SourceFile:17)
at aet.<clinit>(SourceFile:6)
at wy.a(SourceFile:109)
at wy.a(SourceFile:91)
at gq.b(SourceFile:127)
at gq.a(SourceFile:153)
at gr.a(SourceFile:526)
at net.minecraft.server.MinecraftServer.a(SourceFile:242)
at net.minecraft.server.MinecraftServer.p(SourceFile:388)
at axv.p(SourceFile:112)
at net.minecraft.server.MinecraftServer.run(SourceFile:316)
at ep.run(SourceFile:539)
--- END ERROR REPORT 5a028b6a ----------

If anyone has an idea of what is going on, please let me know!