I am having the exact same problem. I did exactly what you said, but then I get this:
2014-01-12 17:22:37 [WARNING] [ForgeModLoader] Atum missing - MFR Atum Compat not loading
2014-01-12 17:22:37 [WARNING] [ForgeModLoader] BackTools missing - MFR BackTools Compat not loading
2014-01-12 17:22:37 [WARNING] [ForgeModLoader] Biomes O' Plenty missing - MFR Biomes O' Plenty Compat not loading
2014-01-12 17:22:37 [INFO] [ForgeModLoader] Chococraft is not available; MFR Chococraft Compat not loaded
2014-01-12 17:22:37 [WARNING] [ForgeModLoader] ExtraBiomesXL missing - MFR ExtraBiomesXL Compat not loading
2014-01-12 17:22:37 [WARNING] [ForgeModLoader] Magical Crops missing - MFR Compat: Magical Crops not loading
2014-01-12 17:22:40 [WARNING] [ForgeModLoader] Pam's HC base missing - MFR Pam HC Compat not loading
2014-01-12 17:22:40 [WARNING] [ForgeModLoader] Pam's Weee! Flowers missing - MFR Pam Weee! Flowers Compat not loading
2014-01-12 17:22:40 [WARNING] [ForgeModLoader] RedPowerWorld missing - MFR RedPower2 Compat not loading
2014-01-12 17:22:40 [WARNING] [ForgeModLoader] Sufficient Biomes missing - MFR Sufficient Biomes Compat not loading
2014-01-12 17:22:41 [WARNING] [ForgeModLoader] XyCraft missing - MFR Xycraft Compat not loading
2014-01-12 17:22:46 [INFO] [ForgeModLoader] [PfF]: Injecting vanilla crops into ore dictionary.
2014-01-12 17:22:57 [INFO] [STDERR] java.lang.OutOfMemoryError: PermGen space
2014-01-12 17:22:58 [INFO] [Minecraft-Server] Stopping server
2014-01-12 17:22:58 [INFO] [STDERR] java.net.SocketException: Socket closed
2014-01-12 17:22:58 [INFO] [Minecraft-Server] Saving worlds
2014-01-12 17:22:59 [INFO] [STDERR] at java.net.PlainSocketImpl.socketAccept(Native Method)
2014-01-12 17:22:59 [INFO] [STDERR] at java.net.PlainSocketImpl.accept(PlainSocketImpl.java:439)
2014-01-12 17:23:01 [INFO] [STDERR] at java.net.ServerSocket.implAccept(ServerSocket.java:468)
2014-01-12 17:23:01 [INFO] [STDERR] at java.net.ServerSocket.accept(ServerSocket.java:436)
2014-01-12 17:23:01 [INFO] [STDERR] at net.minecraft.server.ServerListenThread.run(ServerListenThread.java:80)
It looks like there is no memory for permgen, because the start code does not specify any permgen memory. I have looked up solutions but they all require using the standard start code. However, when I use the standard start code, I get this 'unable to access jarfile' error.
I'm going around in circles, and if someone could help me that would be great. Thank you!