I am looking into this problem. After a short review I have eliminated the main memory leaks. There is still memory leaking though; around 100 bytes per creation of an XML::Bare object. At least now this leak is constant and there are no larger leaks due to the XML itself.... something about the object.
If someone could develop a Devel::Leak module that doesn't depend upon a debug version of perl it would be quite helpful....
Will post again when all memory leaks are eliminated.