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I am running on XP SP3 on my 2GB RAM laptop right now and I see from the task manager that there are still around 800MB Physical Memory available. You can have a look at the appearance of the task manager here

Anyways, I see Page File Usage is quite much considering the amount of Physical Memory still available. Why Physical Memory is not used more which I hope will increase the performance.

Is there any tweak I can try to increase the performance that way?

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Might be interesting to check this blog post from Jeff – Ivo Flipse Sep 25 '09 at 9:52
My philosophy is that I don't mess with this. Turning off your page file can have bad consequences. – user3463 Sep 25 '09 at 10:11
That's why I referred to the blog post, if you don't know what and why you're doing it, leave it be – Ivo Flipse Sep 25 '09 at 10:32
up vote 13 down vote accepted

Short Answer: No, Don't Touch It !!!

The Windows Page File is used for more than just "extra memory" when it runs out of physical memory. Please refer to this post and the accepted answer for more details than I can possibly give.

Any benefit or detriment from removing a pagefile on an 8GB RAM Machine

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