I recently discovered the space in the new table SQL_Sysprocesses was not being freed even though the delete old rows statement was successful for each package execution. To fix this issue, I altered the table's index to be clustered. The database went from from 40 GB to 220 mb, a very big difference in space. I would recommend everyone making this change.

Afterwards I found the Microsoft KB article 913399 which confirmed this issue in SQL Server 2005, 2000, and 7. It provides several work arounds including the cluster index.

Sorry for the mistake