From what I've read in the past, you shouldn't partition a drive you want to put the swap file on. The reason for this is that you can't control where in the drive a partition begins and ends. So if create a fixed swapfile, but put it on a partitiont that just happens to have started in the slowest part of the drive...you're going to be defeating the purpose.
As for which drive, definately the fastest, but then again that might also depend on your setup. You didn't say which IDE channels you had each HD setup on.....and that can make a difference. With the way that IDE works (unless it's changed....god I've been out of this for too long) you can't read and/or write to two different devices on the same channel (IE: If the Maxtor is IDE1

rimary, and the WD is IDE1:Secondary, you won't be able to read/write to them simultaneously). This can make a difference when you're using a program on the Maxtor drive that suddenly needs use of the swapfile on the WD drive (or vice versa), because you won't be able to read the swapfile and the program at the same time.
My suggestion for both the swapfile, and IDE setup of your configuration would be:
IDE1: Primary - Maxtor 7200RPM
IDE1: Secondary - WD Caviar 5400RPM
IDE2: Primary - CDRom/DVD Drive
IDE2: Secondary - CDRecorder (if you have it)
Then put the swapfile on the faster Maxtor drive, and continue to use the WD as backup as you said that you do.
With the amount of memory that you have, the need for a swapfile is minimum....but I'd make it anywhere from 100-150megs. You don't want to make it too big, because then the unneeded space of the swapfile will take up room on the faster part of your HD. Space that could be used for other things, such as Windows files and whatnot that could also affect performance.
Futher reasons for the above setup:
Having your CDRom and HD on two seperate channels will increase performance, as both channels can be accessed at the same time. In the above configuration, however, if you make CD-to-CD copies, you'd be better off copying the one CD to your primary HD first (since both the CD and CDR would be on the same channel, and would have to alternate reads and writes).
Whew....hope that came out clear and understandable....heh, been wayyyyy too long.
Edit
Just thought of this, I figure it's common knowledge but thought I'd throw it out there. After making the swapfile fixed (setting both the min and max to the same size) you want to defragment your harddrive so that the swapfile is moved to the fastest part of the harddrive. I'm not sure if the standard windows defragger will do this......Norton's SpeedDisk does, as well as probably any other retail Defragger out there.