Thanks Cine, but your example still uses 120 MB of RAM. With everybodies input, I now realize WHY RAM is being eaten alive.lol I gotta work on a buffer-scheme or multiple reads/writes from the file. Anybody comes up with anything, please post!
It is quite difficult to come up with a caching scheme for a usage pattern that is unknown ;)
I suggest you make a new question where you state what you need.