diff --git a/vm/factor.cpp b/vm/factor.cpp
index df27de84fd..24a3e01237 100755
--- a/vm/factor.cpp
+++ b/vm/factor.cpp
@@ -32,7 +32,7 @@ void factor_vm::default_parameters(vm_parameters *p)
 	p->code_size = 8 * sizeof(cell);
 	p->young_size = sizeof(cell) / 4;
 	p->aging_size = sizeof(cell) / 2;
-	p->tenured_size = 4 * sizeof(cell);
+	p->tenured_size = 16 * sizeof(cell);
 #endif
 
 	p->max_pic_size = 3;
diff --git a/vm/free_list_allocator.hpp b/vm/free_list_allocator.hpp
index 822a40f797..d796379799 100644
--- a/vm/free_list_allocator.hpp
+++ b/vm/free_list_allocator.hpp
@@ -47,6 +47,7 @@ template<typename Block> struct free_list_allocator {
 	void assert_free_block(free_heap_block *block);
 	free_heap_block *find_free_block(cell size);
 	free_heap_block *split_free_block(free_heap_block *block, cell size);
+	bool can_allot_p(cell size);
 	Block *allot(cell size);
 	void free(Block *block);
 	void usage(cell *used, cell *total_free, cell *max_free);
@@ -180,6 +181,27 @@ template<typename Block> free_heap_block *free_list_allocator<Block>::split_free
 	return block;
 }
 
+template<typename Block> bool free_list_allocator<Block>::can_allot_p(cell size)
+{
+	cell attempt = size;
+
+	while(attempt < free_list_count * block_granularity)
+	{
+		int index = attempt / block_granularity;
+		if(free_blocks.small_blocks[index]) return true;
+		attempt *= 2;
+	}
+
+	free_heap_block *block = free_blocks.large_blocks;
+	while(block)
+	{
+		if(block->size() >= size) return true;
+		block = block->next_free;
+	}
+
+	return false;
+}
+
 template<typename Block> Block *free_list_allocator<Block>::allot(cell size)
 {
 	size = align(size,block_granularity);
diff --git a/vm/gc.cpp b/vm/gc.cpp
index 1851924cd5..4b530172c1 100755
--- a/vm/gc.cpp
+++ b/vm/gc.cpp
@@ -115,7 +115,7 @@ void factor_vm::primitive_full_gc()
 	gc(collect_full_op,
 		0, /* requested size */
 		true, /* trace contexts? */
-		false /* compact code heap? */);
+		true /* compact code heap? */);
 }
 
 void factor_vm::primitive_compact_gc()
@@ -231,7 +231,7 @@ object *factor_vm::allot_object(header header, cell size)
 
 	/* If the object is smaller than the nursery, allocate it in the nursery,
 	after a GC if needed */
-	if(nursery.size > size)
+	if(size < nursery.size)
 	{
 		/* If there is insufficient room, collect the nursery */
 		if(nursery.here + size > nursery.end)
@@ -239,23 +239,21 @@ object *factor_vm::allot_object(header header, cell size)
 
 		obj = nursery.allot(size);
 	}
-	/* If the object is bigger than the nursery, allocate it in
-	tenured space */
 	else
 	{
-		/* If tenured space does not have enough room, collect */
-		//XXX
-		//if(data->tenured->here + size > data->tenured->end)
-			primitive_full_gc();
-
-		/* If it still won't fit, grow the heap */
-		//XXX
-		//if(data->tenured->here + size > data->tenured->end)
+		/* If tenured space does not have enough room, collect and compact */
+		if(!data->tenured->can_allot_p(size))
 		{
-			gc(collect_growing_heap_op,
-				size, /* requested size */
-				true, /* trace contexts? */
-				false /* compact code heap? */);
+			primitive_compact_gc();
+
+			/* If it still won't fit, grow the heap */
+			if(!data->tenured->can_allot_p(size))
+			{
+				gc(collect_growing_heap_op,
+					size, /* requested size */
+					true, /* trace contexts? */
+					false /* compact code heap? */);
+			}
 		}
 
 		obj = data->tenured->allot(size);
diff --git a/vm/image.cpp b/vm/image.cpp
index bee351b830..2e4433d3b5 100755
--- a/vm/image.cpp
+++ b/vm/image.cpp
@@ -16,10 +16,7 @@ void factor_vm::init_objects(image_header *h)
 
 void factor_vm::load_data_heap(FILE *file, image_header *h, vm_parameters *p)
 {
-	cell good_size = h->data_size + (1 << 20);
-
-	if(good_size > p->tenured_size)
-		p->tenured_size = good_size;
+	p->tenured_size = std::max((h->data_size * 3) / 2,p->tenured_size);
 
 	init_data_heap(p->young_size,
 		p->aging_size,