Kevin,
I have the log level set at warning and just switched it to severe, but the javaw is still using over 1,000,000 KB. The other issue is the amount of memory ArcGIS Server is using at 10.1, almost twice was much as 10. Is that to be expected at 10.1? I also notice that when I stop the ArcGIS Server service, the memory usage does not drop at all.