Well, there is one thing both of us need to do to reduce memory usage. Recompile the kernel (as stated in that article from fancypiper).
I did it 2 days ago, and there is a MASSIVE amount of crap running on the default kernel that you or I would never need. I guess they have to release distro's like that to make them run on most anything (great for us n00b's

, but not so great for running a nice streamlined system. My default install was optimized for a pentium, and as you can see from the sig I run AMD! I just haven't gotten my new kernel to operate properly yet so I am still working on it.
Take a look at:
http://www.justlinux.com/nhf/Compili...mpilation.html
for a good tutorial on it. There is also a good one in your Documentation How-to's, but the actual install procedure listed in there didn't work for me.
Aside from all that, there almost seems to be a memory leak or something. I got my system to boot at 96mb with KDE. Right now I have XMMS, Mozilla, and Konsole running so where the hell could my other 400mb's of ram be?
edit: nevermind, duh... mine is cached as well.