even If you have 2Gb of ram, I know that there are some internal components of WinXp and some programs that depend on using a pagefile, so once it goes to use the pagefile it will find none, therefor crashing, I recommend setting it to being controlled by the OS that way it dynamically changes it to what it needs it to be.
And disabling it then defraging your Hdd then creating it again doesn't hurt anyone.
BTW I have TweakXp pro and in one of my hdd tweaks is a tweak that autimatically delete the whole content of the pagefile on shutdown, which increases my shutdown time by like 10 sec but thats ok with I am losing nothing because when I press that shutdown button I am not going to be using that PC for a good period of time.