I've disabled the page file on all my systems since I had more than 128 MB RAM. Increased performance every time. System has never crashed, individual programs rarely do since Windows is pretty good about warning you. A funny thing I noticed on my first XP box (256 mb): whenever I ran out of memory, Winamp got killed. Don't know why, but it was no coincidence - I've reproduced this a hundred times, showing it to friends, etc. there was no memory leak in Winamp - it's memory usage was constant. Maybe the system figured out it had no files open in write mode, so killing it would be harmless. Anyone heard of something like this or have another explanation? Windows killed user processes in reversed alphabetical order?! :)
tl;dr; determine peak usage, install twice the memory, DISABLE virtual memory, profit!