I guess I am so ignorgant here..does the pagefile act like "ram"....
If a very basic sense, it's an overflow area when you are using more virtual memory than you have physical memory. So, if you are running programs and they combine are using 3 gig of memory, in your case only 2 will fit physically into ram. So the additional 1 gig is stored in the paging file. The system 'swap' out parts as needed so when you acces part of the 1 gig on disk, the least used part in ram is put on disk and the disk part is put into ram.
My point was, with 2 gigs of memory, you're probably not running into many cases where your actually swapping as such, it doesn't matter too much what you do with the page file

I don't recommend turning it off as there are still some system apis and error reporting processes that need some page file available to work properly (although they arent common).
Bill