@ CubeTheThird
No - I simply switched from 1.7.2 + Java 32 bit (I assume: at some point I did an "auto-update" of Windows, so who knows when it automagically decided to start running Java 32 bit instead of Java 64 bit...) without any noticeable memory problems, then auto-updated Minecraft to 1.7.3/1.7.4 + Java 32 bit and saw nearly immediate memory problems and lag, then switched from Java 32 bit to Java 64 bit and don't see any obvious problems with memory management.
It's possible that there are equivalent memory issues using Java 64 bit, but even though there's now nearly 1 gig of allocated memory (which may hide for longer such memory problems) I don't see any rapid ramp up of used memory from the pool.
Yes, sorry about misinformation: the start up tells me it's 1.7.4, I hadn't noticed the skip through 1.7.3 with the version update.
Since I had spotted that somehow I was running Java 32 bit, I later changed to Java 64 bit, and the memory pool increased to nearly a GB. It's hard now to see the effect (because there's twice the memory pool), but I do feel that I'm NOT seeing the ramp up of memory use. But - hard to tell...
Clarification: memory usage as reported by Minecraft F3, allocated memory was approx. 500MB
Yes, makes sense. I tried to recreate the effect while using 64 bit Java and the increased memory pool, and no "terminal" lag. I do see problems with rendering, though, swathes of missing ground looking through to the underlying lava, caverns, etc., that take a while to fill in - I'll put this down to using maximum distance and inadequate CPU. But note that I have no problem at all rendering Games such as Skyrim at ultra high resolution and high frame rates. The fact that the lava fields, etc., under the ground are rendered at all is puzzling. But that's off topic, and this is probably the wrong place to bring that up.
Nik