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If you actually Mouse-Over those colored bars, it explains all of this briefly.
Stand-By = Cached Data, not actively in-use.
Overall; if you go to run something demanding; lets say a Game that can use alot of RAM. Memory shown as Stand-By will be freed up and the In-Use will increase. These both go hand in hand with one another. Stand-By # is nothing to be concerned about and should not be confused for In-Use
So thanks for the replies guys and for setting my mind at ease!