Both of these are Myths. Setting the Paging File smaller does nothing but conserve disk space. By default the paging file is set to 1.5x RAM this is the system managed setting and it is not recommended to set it smaller as you may REDUCE performance by not having enough paging space. Moving the paging file to a separate partition on the same HD will further reduce performance since the HD head now has to travel farther to access it. RAMDisks are just a complete waste of time.

XP Myths