I'm assuming that you're using DB2 V8 for Windows (always post version
and platform information), if not this information may not apply.

We always set the following:

APPL_CTL_HEAP_SZ ==> 512
APPLHEAPSZ ==> 1024

But it will depend on your application needs.  Depending on how much
logging your application will perform and the size of the transactions
you may need to look at the following:

LOGFILSZ
LOGPRIMARY
LOGSECOND

To avoid transaction log full errors.

HTH,
klh

Most of the parms   are defined so that you can launch a server that will
have th OS, Comms Support, the instance and the db to work in 512 MB of
memory.   I don't think you can run a "server" with more than 3-5 clients a
small db in less than 384 mb.  There just wouldn't be much room ledt.

So yes most of the capacity management parms of the db xfg need to be
revisited.
The easy way is to use the configure paramaters wizard from the Control
Center.
Answer the questions upt to thwe point where it asks you if you want to run,
save, the script.
Do NOT run it now.  Save it in your task center or as a script.
Print it and look at the results.
Change one parm. at a time to suit your requirements and monitor progress.
HTH,  Pierre.
PS: Alittle reading of the Admin. Guide Performance Handbook will also help.
It's online.