SQL is a memory hog, the more memory it can get, the better. That said, 500MB memory is nothing for a production server. If I had to guess, I'd say you're using task manager to check, and that usually shows wrong for SQL Server.
How much memory is on the server and what other apps are on the production server?
Gail Shaw
Microsoft Certified Master: SQL Server, MVP, M.Sc (Comp Sci)
SQL In The Wild: Discussions on DB performance with occasional diversions into recoverability
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