I think I have found a method of reclaming all that RAM in Mac OS 9. It's quite simple, when you have fragmented RAM, just log out of the finder. Then log back into your account, and TA DA! Check back in the "About This Computer" and you'll notice that most of your RAM has been reclaimed. Now I have found this method to work about 7 out of 10 times. Then again, nothing beats a good ole restart.
You only have to be right once to make it all worthwhile