If you look in the hadoop-1.0.3/docs
folder, you will find a file named mapred_tutorial.html.
In the "Task Execution & Environment" section, the document tells you to use the following:
mapred.{map|reduce}.child.java.opts
They have changed the configuration name, so the mapreduce.map/reduce.java.opts
from hadoop-0.21.0 does not work anymore on the newer hadoop-1.0.3.