Not bad at all. If you would like to know how Android manages memory better here is an explanation. If you go to Settings ---> Applications ---> Running Services, there are numbers along the bottom. Here is the explanation of those numbers.
Finally, along the bottom of the screen are some obscure numbers. If you know how to interpret them, this gives you a lot of information on the memory status of your device:
* Avail: 38MB+114MB in 25 says that the device has 38MB of completely free (or likely used for unrequired caches) memory, and has another 114MB of available memory in 25 background processes it can kill at any time.
• Other: 32MB in 3 says that the device has 32MB of unavailable memory in 3 unkillable processes (that is, processes that are currently considered to be foreground and must be kept running)