I totally agree with @petrpudlak, we would need actual code to make any meaningful comments to the question "why does my code use so much memory?" :) (sorry, you did offer code), however, some of the patterns you describe are pretty typical in Haskell and some generic discussion is possible.
First of all, note that native Haskell types use a lot more memory than you might guess. Take a look at the ghc memory footprint page at http://www.haskell.org/haskellwiki/GHC/Memory_Footprint. Note that even a simple Char will take a full 16 bytes of memory! Add to that pointers for linked list items in a String, and you will easily use more than an order of magnitude greater memory than you might have guessed. If memory is important, you should use another data type, like Data.Text or Data.ByteString, which store Strings internally more like c would (as a block of bytes in memory, with 1-4 bytes per char, depending on encoding and what char is used). If data other than Strings are the problem, you can use unboxed arrays for arbitrary data types.
Second of all, if possible, you can cut down memory usage by processing items in series (where the memory will be garbage collected right away). Haskell laziness often does this for you automatically, for instance, try to run the following program
import Data.Char
main = interact $ map toUpper
As you type, the output will appear continuously (your OS, not Haskell, may buffer full lines, so you may need to hit 'enter' before seeing anything, but you will see output update for each 'enter'). Rather than loading the whole input into memory and then processing all at once, Char memory is being created and garbage collected Char by Char.
Of course this isn't always possible (ie- if you have to process the data in a very nonlocal way), but most of the time at least parts of the code can be refactored this way to cut down total memory usage.
Edit- Sorry, I just realized that you did post a link to the code, and you are using ByteString..... So some of what I wrote isn't valid. But I do still see boxed lists and unpacking of the ByteString, so I will leave the answer as it is.