Robert, has your traffic gone up? That would be one likely reason why
your AOLserver process is now tending to use more RAM than it used to.
Dave is right, 120 MB is pretty small, and is a tiny amount of RAM
these days. Keep in mind that some parts of AOLserver were purposely
designed to be somewhat wasteful of memory in order to run faster.
But if you need it small, cutting down your number of connection
threads to a minimum is probably the main way. Also configure things
so that idle connection threads will eventually exit, rather than
hanging around taking up RAM. You might also try un-installing any
OpenACS packages (and thus their Tcl code) that you don't actually
need.
The main thing though, is find out where your AOLserver
process is actually using its RAM... Depending on what applications
you're running, it could be various different things. Then hit a
development server with a similar load, verify that it's using up RAM
in a similar way, so you can then measure how much you save without
taking down and/or waiting for traffic on your Production site.