That is true when I run it through WED, but when I run the stand-alone executable, it uses about 400mb less, 600,000 - 800,000 or so.
This is because the engine sadly uses a bunch of extra memory (depending on the size of your code) for test runs. See here and subsequent posts:
http://www.opserver.de/ubb7/ubbthreads.php?ubb=showflat&Number=466519#Post466519The size of the wmb files does not matter, it's about the files being loaded/ (mostly level?) objects (including textures) created at runtime.
I always only use SED to launch my games. As Matt said you have to put in -nx XXX in the command line options under Preferences.
However, keep in mind that those will only be considered when you press the middle [▶] Test Run button, not the Run Current Script button to the left.
For publishing I create a Window Starter Definition as explained in the manual with COMMAND "-nx 200". That's only possible with the Pro version though I think.
