yes, i encountered that too. as far as i could tell, that's because the script is stored in memory after being compiled and that's as much more memory as it needs for a call to that function.
if you always get lotsa data in your results, using this function will decrease memory usage tho, unless you use non-buffered queries (which are preferable unless you absolutely *have* to use mysql_seek(), or you need to do another query while the last one hasn't finished reporting back, as they can provide a small speedup)