front end - Memory leak in FE?

A very abridged example of what was originally a major leak

{Animator[Dynamic@α, RefreshRate -> 120],
 Dynamic[arrows = (α; Arrow[{{0, 0}, {0., 1} + 0.001 RandomReal[2, 2]}]);],
 Dynamic[Graphics[arrows, ImageSize -> Tiny]

  ]}

I'm running Windows 7, x64, Mathematica 8.0.4. The Mathematica.exe process slowly (in this example) grows in memory usage and nothing I tried other than close and reopen Mathematica, seems to help.

Can you reproduce the problem? Is it known? What exactly is causing it? Any way to handle it?

I haven't got much experience in interfaces, but I had done a satisfactory one only to realise after a while it was using up 1.5GB of RAM

Answer

Reported, and forwarded to the developers. It is still there in v9