Originally posted by: Deinonych
This is a common question, and there appears to be no "correct" answer. I've heard different opinions about what the "best" pagefile size is. You may have to experiment with different settings to see which gives you the best results. That said, the rule of thumb is to set your pagefile size to 1.5x your system RAM. However, with 2GB of RAM, you may find that you can use a smaller pagefile and improve performance. I have mine set at 1GB min/1GB max and have had no problems with resource allocation or performance. I have 2GB of RAM in my system.
Just be sure that your pagefile isn't fragmented, or you'll get performance degradation. The best way to ensure an unfragmented partition is to delete your pagefile (reboot), defrag the pagefile drive and reset your pagefile size.
There are a number of pagefile articles out there as well. Just Google "pagefile optimization guide" or something similar and you should get quite a few results. Hope that helps.