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I would suggest removing the page file from the system disc, and putting it on another (assuming that second disc isn't *really* slow). That way any reading/writing to and from the page file won't delay the OS. The size is a bit tricky; it depends on your OS version, how you use your computer, what programs you use, etc.
I'll assume you use Windows XP. I'd suggest turning on your computer, doing what you do normally (games, programs, etc), and then looking at the task manager. Check the "commit charge"; that gives you an indication of your current memory use, your limit (ram + page file), and your peak use. If that peak use is way lower than your limit, you can safely reduce your page file size.
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