MDS uses all memory

Question

I recently upgraded to Lion which led me to install a new version of Fuse for the 64bit kernel.

Today I upgraded to 10.7.1 and get the following problem.

When I mount my truecrypt volume the MDS process uses all available memory (It takes 5GB real memory) leaving 3MB of my 8GB in the system. Some procesesses will randomly start using more than 150% cpu and the system becomes extremely unresponsive. (10 seconds before responding to keyboard or mouse clicks.)

If I unmount the truecrypt volume and kill-9 the mds process the computer goes back to normal.

I've tried booting the kernel in 32bit mode with no improvement.