You can move the swap file to another partition if you wanna free up even more space.
Assuming it works the same way in XP as it does in 2000, here's how you do:
Start->Settings->Control Panel->System
Go to the advanced tab, then performance options.
There should be a Virtual Memory section there, press change, and you can place your swap whereever you feel like.
Don't set it to 0 though, as that might be rather unhealthy for your computer.