See 
http://groups.google.com/group/google-appengine/browse_thread/thread/edbfdc06bffcfab1

On Thu, Dec 15, 2011 at 6:13 AM, mike hershey <[email protected]> wrote:
> I've been watching my app and it typically idles at 80mb, and slowly uses
> more and more memory until it is just over 256 ram. At this point garbage
> collection happens and memory drops back to 80mb.
>
> I've noticed that despite using more then 128 memory, I don't think I am
> being charged for F2 or F4 instances. How do you plan to handle this in the
> future? Will the app automatically jump up and down instance classes, or
> will there be a hard cap at 128mb of ram?
>
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