Firefox 3 puts a nice effort into further reducing memory consumption. Initial testing of Firefox 3 Beta 4 shows a dramatic change. In the mist of Internet Explorer 8's less than fantastic standards progress, along with rumors of the IE8 beta being horribly buggy, Firefox's competitive outlook seems good. 
Memory change highlights:
- Reduced memory fragmentation
- Cycle collector
- Tuned Caches
- Image data storage adjustment
- Leak cleanups
<Source: Firefox 3 Memory Useage>
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