Hmmm.... I currently have Safari, Photoshop, Keynote, Word, Powerpoint, Pages, and a handful of other apps open, with multiple documents open in each of them, and I still have 677 MB of my 2 GB free.
It might be how you interpret what Activity Monitor is showing you. If you are assuming you are having problems because your free memory is very low, relax. I currently show a paltry 30 MB as "Free" memory. However, the available "free" memory is actually the sum of Free and Inactive memory (which is why I have 677 MB free). Status monitors like MenuMeters report free RAM properly (as Free + Inactive).
Apple states +"... you shouldn't worry when the Free memory is low. The only time Free memory should be high is right after the computer starts up. As you use applications or services, memory is used and transitions to Inactive. Applications that need more memory will take from the Inactive, but the Inactive is there just in case you need it again. If the combination of Free and Inactive is very low, then you might need more memory."+
Read more here:
http://docs.info.apple.com/article.html?artnum=107918
Hope this helps...