I wouldnt worry about XP's maximum VM size - its pretty big... I forget the exact number.
Here's what I can contribute:
You have 1GB of RAM, so unless you're working with large amounts of data, you're not getting much use out of your pagefile. I would not suggest disabling it, though, as Windows XP will page unused data to your pagefile in order to leave plenty of free memory for itself and your applications to use (this is in constrast to UNIX/Linux VM management which keeps everything in physical memory until its totally full). You could set your pagefile to 2GB if you want, but you'll never really need any of that (and you might be able to put that space to better use), so I would suggest setting it either to 1GB or even a bit less. Typically, it is not recommended to have less VM than physical memory, as physical memory gets dumped to VM when the OS crashes... but if you're not concerned with using that data for debugging purposes, feel free to set your VM to 512MB or so.
Hope that helped.
