That is an excessive amount of handles indeed, and not normal operation.
What are the log files like on those machines that SmarterStats is analyzing? Are the files big or small (on average)? Does each site have many log files or few?
If you have a recent version of SmarterStats, and you have lots of tiny files, try zipping them up by month or maybe change the log file creation in your web server to rotate by week or month if the sites don't get a ton of traffic.
Grady Werner
SmarterTools Inc.
www.smartertools.com