Wasn't this found to be intentional? http://blogs.zdnet.com/Bott/?p=1235
Bott (an admitted MS lackey), explains why in his opinion it won't stop RTM from shipping, or even delay it in the slightest.... and I fully agree.
The bug simply isn't priority 0. No one has Windows Update disabled these days, and this issue, as Bott well describes, won't manifest itself in any of the default configurations/options.
He admits it's incorrect behavior, but works out the logic why it's not the end of the world and correctly explains that the sky is NOT falling on Windows 7, contrary to popular belief :)
Here's what I read, from someone who works at Microsoft:
[T]he design was to use more memory on purpose to speed things up, but never unbounded — we requset [sic] the available memory and operate within that leaving at least 50M of physical memory.
This is what happens, right? So I don't see how the article is wrong. I also don't see how this is a problem for anyone.
"When recovering your disk from catastrophic failure, Windows uses extra memory to make the recovery go as quickly as possible." OH NOES!!!11!!