Hi Vicki,
In the windows downloadable starter kits I used Launch4J to create a launcher for Bukkit (start.exe), this is due to the java install on Windows not being consistent. Effectively start.exe runs java -Xms1024M -Xmx1024M -jar craftbukkit.jar but it also does the complicated work of making sure java (or the right version of java) is installed, working out where it is installed and running it.
In usual circumstance start.bat isn't run, I left it in for testing circumstances, but it works, just double click it and it will start up Bukkit.
You might get an error saying some similar to "java - command not found", this is usually due to a path to java not being setup and is pretty typical if you have just installed the JRE (java runtime environment), in which case you will need to change the start.bat to include the full path to java i.e:
c:\program files/ ...... /java -Xms1024M -Xmx1024M -jar craftbukkit.jar
So if you want to change the values of how java runs Bukkit, I would change start.bat and run it directly.
The 2 values Xms & Xmx are the amount of memory Java gives at the start (Xms) and the maximum amount of memory Java will give (Xmx).
If you are having memory issues you could reduce these to say 512M e.g.
java -Xms512M -Xmx512M -jar craftbukkit.jar
However, as David says, you might experience problems, Minecraft is a memory hungry application.
I hope this helps, if not give us a shout.
Martin