[eluser]WanWizard[/eluser]
I could easily replicate that, so I think I understand the issue.
I had a form with a dropdown with all site members. I needed to select them all (only ID and name), store them in an array, feed the array to the view, have the view cached by the output buffering in the output class. I had enough members on this site to have this use 32M (which was the app limit at that time).
No more issues since I've switched to jQuery to pull them dynamically from the database using an autocomplete function.
I short, don't pull huge amounts of data from the database. If you do that, chances are your approach to the problem is wrong. Rethink your solution.