I do not have the JVM options in front of me, but there should be an option to have Java release memory faster. It will use more processor time since that requires more Full GC cycles, but you should get your memory back faster. Will need to either run the java -help command, or dig through java.sun.com for the exact settings you are looking for.
On http://java.sun.com/docs/hotspot/VMOptions.html an explanation of some of the possible options are mentioned. The option you are looking for are -XX:MaxHeapFreeRatio=<Maximum>. This defaults to 70 percent. In other words the allocated heap is shrinked if 70% of the heap are free. You could try a lower value.
You could also play with the -XX:MinHeapFreeRation=<Minimum> option (default 40), which determines when the heap should grow. If at least 40% of the heap is not freed after garbage collection, the heap size increases.
Steen Jansdal
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