Caffeine taking up 2.88GB virtual memory
So apparently I was reading it wrong. According to Thomas Franzén ( lightheadsw )


  Virtual memory size is a meaningless
  number for most uses. An application
  having a big virtual memory size
  doesn't affect you, because it's just
  a virtual memory space. The column you
  should be looking at is RSIZE. That's
  the actual amount of physical RAM an
  application is using.


I verified with ObjectAlloc and it seems like it is using only 8MB or so.