sql server 2008 r2 memory leak

we are running software that utilities sql server 2008, this software seems to run horribly
with 8 workstations using windows 7 this software hangs frequently when making calls to the sql server. sometimes windows even states it is unresponsive.
we checked the indexes on each table and some of the more frequently used tables had indexes of 90% fragmentation and up,
obviously we have been staying on top defraging of that but with 80 databases and 25 tables per database it takes some time.
we have also noticed that over time more errors / lag starts occurring,
and in monitoring the server in a couple weeks the ram usage of sqlserver.exe has climbed from a gig to 7gigs.
is it possible that the service installed on the server by our software vendor is causing a memory leak in sqlserver.exe

What other things could be leading to the issues we are having?

please note: the software vendor installs our software andthe sql server instance,
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csePixelatedAsked:
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Brian CroweDatabase AdministratorCommented:
You may not have a memory leak at all.  SQL Server is a resource hog and doesn't play well with others.  It will grab all but a few MB of memory over time and does not release it whether it is actively utilizing all that memory currently or not.  You can limit the maximum amount of memory an instance will use through the options dialog.

http://technet.microsoft.com/en-us/library/ms178067(v=sql.105).aspx

Try this as a first step
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cheryl9063Commented:
You always want to set your max memory  on SQL to total machine memory minus about 2GB for the OS. Like BriCrowe said above you do not want to have to many other applications on the same server as your SQL. SQL Server should have it's own box.
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cheryl9063Commented:
Use your perfmon counters to check page life expentance(should be about 180 seconds or above) This will tell you if something is pushing query plans out of memory.
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