That would depend on your OS. If you are using Win98se or lower, 512mb is all you need. You would run into problems with more that 512mb ram. It would require a change to your vcache. Some say you won't notice much of a difference anyhow with any OS.
XP will automatically take advantage of any RAM you have. In my experiences, the memory tweaks for Win2k and XP actually make the system unstable. Absolutely no performance difference, either.
I increased the IOpagelocklimit to 65536mb and checked the Enable Core System Performance check box which says "On systems with large amount of RAM (512mb or more) this tweak can be enabled to force the core Windows XP to be kept in memory and not paged to disk".
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