MaxPermSize and how it relates to the overall heap

Many people have asked if the MaxPermSize value is a part of the overall -Xmx heap setting or additional to it. There is a GC document on the Sun website which is causing some confusion due to a somewhat vague explanation and an errant diagram. The more I look at this document, the more I think the original author has made a subtle mistake in describing -Xmx as it relates to the PermSize and MaxPermSize.
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