I just found out that this is actually NVidia driver bug. I am not sure
in what specific version of the driver this bug was fixed, but after
updating few minutes ago the driver using ubuntu-x-swat ppa to 260.19.26
beta (https://launchpad.net/~xorg-edgers/+archive/ppa) there is no
memory leak any more.

Can some of the other posters give it a try so that we can close this
bug as invalid?

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https://bugs.launchpad.net/bugs/656590

Title:
  mplayer uses enormous ammount of memory when ASS fonts are displayed

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