Read MS KB articles 308417 and 314482, regarding pagefile recommended by MS for XT.
Their "optimal" recommendation would be:
1. A dedicated disk/partition with variable-size pagefile, minimum 1.5X ram size and maximum size of 3X minimum setting (for 512MB ram: 768MB min and 2304MB max).
2. A fixed-size pagefile in the OS with min and max set to ram size (515/512).
Others on this forum with 512MB ram use only a single fixed-size, set at 512/512, and report good results.
Whatever your decision, MS strongly recommends against removing the pagefile altogether, since XT dumps diagnostic information into the pagefile in the event of a system error.
Hope this helps!