Try setting the perm gen to 256 in the options, I had to do that on java 7 (on linux though), java 8 handles permgen itself so it does not have that issue.
From his log: (Memory: 273957656 bytes (261 MB) / 1037959168 bytes (989 MB) up to 1037959168 bytes (989 MB) That is why I believe it to be permgen, as his actual memory was barely over 1/4 full when it crashed.
But, there might not actually be enough allocated to the JVM. I don't know exactly how java reads total mem, whether it's allocated to jvm or just total system mem.
What is displayed there is what is actually allocated to minecraft at the moment, and as you can see it is only using 261 out of 989mb. If it cannot allocate enough memory for the java heap it will throw a different error much earlier,basically failing to even launch at all. (I have ran into both these issues in my time)
One interesting thing is that if you set Java memory TOO high and your total system memory is low, then it will eat available free memory for other tasks, which may include RAM used for graphics-related things.
It says that I'm running 32bit java for alice. My OS is 64bit. I have no idea how to allocate memory.
You need to install 64bit java. With 32bit you can only allocate 1GB so Alice can't load (it's pretty much certain that Alice will require over 1GB of memory). Since you have a 64bit OS you need to download the 64bit java and then Alice won't fly off the handle so badly If you do have any more problems just say, also I can help you allocating more memory.