If it's really necessary for you to start a separate VM for each test, your best option is probably to make sure that you use one of the newest VM releases from Sun. The startup time has decreased quite a bit over the last Java versions and with 1.6.0_16, a simple "Hello world" program takes about 0.2s to run on my system.
If your question rather was ment to be "how to run more tests in one VM", the easiest approach depends on which test framework you are using (if you're not using a framework, you should really consider so). With JUnit and possibly the ant target for JUnit, you can either use patterns to match the tests you want to run or alternatively join different test classes in a test suite, which can then be run in one VM.