Hi DrBaer! Speaking for W2K (XP probably the same?) . . . .
Right click "My Computer."
Click "Properties"
Click "Advanced"
click "Performance Options"
You're given a choice of optimizing for applications or background processes - I have "applications," which I believe is the default.
I have my pagefile set very low at 240 and it works GREAT, but YMMV.
"Max-Mem", available at MajorGeeks, is an excellent RAM gauge and will give you an idea of how much you're using when the PC is "up and running," but not using any applications. It is also a RAM "freer/defragger," but if you don't want ot bother with any extraneous stuff, just right click taskbar at bottom and select Task Manager. Compare reading to how much you have "stock" (256/512/1024, etc). If you've got a good amount left, you can safely lower the page/swap file although there are "bottom limits," especially with XP. I love Windows, but my W2K is trimmed to the max and IS more efficient - XP does an awful lot of "stuff."
The pagefile only kicks in when your system is running low on RAM; it becomes "virtual ram" and a sort of cushion. You do NOT want it happening if it can be avoided, and "buying more RAM" although the knee-jerk reaction, isn't always necessary. By configuring AntiVirus, firewalls and especially Windows start up services (there's around 12 you don't need to be "automatic!") - to be lean and mean, saves anywhere from 25-60MB of RAM after startup. THIS ALSO can help you reduce pagefile without adverse effects.
Hope this helps.