Without getting into all of the technical aspects of why NT [Win2000] likes more RAM, let's just say that there's a lot more features in the OS compared to Win9x. These features and other services take up gobs of RAM. Depending on the applications you run and the memory requirements it has you will most likely run over your physical capacity of RAM if you only have 64~128, which will force the operating system to turn to the virtual memory [page file] located on the hard drive. This will obviously create a slowdown since it will be accessing the HD more than usual - which is why you buy more RAM.
So I hope that answers your question; you'll notice less disk swapping.
Edit: As for the pagefile, you can leave that the way it is and it'll be fine, but I'd recommend increasing it a tad, depending on what you have it at now. Some people say Physical RAM * 1.5 and others like less/more. Make sure you have a fixed page file; something that Windows does not do by default. Be sure to defragment before you adjust the size..