> We have one big server that serves our rails web application.
>
> I'm new to using memcached and I'm planning to use it for storing session
> data, I mean as a session store. What happens if memcache consumes too much
> memory? Should I monitor the memcached process now and then and restart it?
> Or, can I set memory limits for it so that it won't exceed the allocated
> space?

You shouldn't use memcached as a persistent storage.
Your issue as a rule implemented in the following maner:
 - store the session's data in the persistent storage (DB, files etc.)
 - cache the session's data in the memcached

All the read requests should go to the memcached. If there is an empty
result - go to the persistent storage and cache the result in the
memcached.
All the write requests should update the both persistent storage and
memcached.

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