I am currently storing a list of words (around 120,000) in a HashSet, for the purpose of using as a list to check enetered words against to see if they are spelt correctly,
The problem is by design: Storing such a huge amount of words in a HashSet for spell-check-reasons isn't a good idea:
You can either use a spell-checker (example: http://softcorporation.com/products/spellcheck/ ), or you can buildup a "auto-wordcompletion" with a prefix tree ( description: http://en.wikipedia.org/wiki/Trie ).
There is no way to reduce memory-usage in this design.
Check out bloom filters or cuckoo hashing. Bloom filter or cuckoo hashing?
I am not sure if this is the answer for your question but worth looking into these alternatives. bloom filters are mainly used for spell checker kind of use cases.