If you define a dedicated page file to use only, for example, 512MB, that is better than allowing Windows to manage your page file. By dedicated, I mean setting the minimum size to 512MB and the maximum size to 512MB. If Windows manages your page file, the size of it will vary, depending on how much Windows needs to use. This causes fragmentation on your drive, which tends to slow disk read access for the entire drive.
It is recommended that you at least set the page file to 2.5x the amount of RAM. 128MB RAM x 2.5=320MB page file. But as mentioned above, more doesn't hurt, if you have the disk space available. Don't make it too large though. The more physical RAM you have installed, the less paging is required.