Yes, I'm using the latest version. I have thousands of files (one folder has over 170K files), but don't have the problem with other instances (I have on sync on my notebook and another on a 2008R2 server). I've seen this problem three days in a row, first two with the first service version, and the next time with the latest version (I hoped that that would fix the problem).
I've checked the service again today, and didn't have the surge in memory size. I'll let you know if it happens again, maybe I can give you better info. I suppose a dump is out of the question, as the system uses too much memory when on this state...
