Virtual memory is an addressing scheme implemented in hardware and software that allows non-contiguous memory to be addressed as if it were contiguous. The technique used by all current implementations provides two major capabilities to the system:
Memory can be addressed that does not currently reside in main memory and the hardware and operating system will load the required memory from auxiliary storage automatically, without any knowledge of the program addressing the memory, thus allowing a program to reference more (RAM) memory than actually exists in the computer.
In multi tasking systems, total memory isolation, otherwise referred to as a discrete address space, can be provided to every task except the lowest level operating system. This greatly increases reliability by isolating program problems within a specific task and allowing unrelated tasks to continue to process.
Virtual memory is created using a special file called a swapfile or paging file.
Whenever the operating system has enough memory, it doesn't usually use virtual memory. But if it runs out of memory, the operating system will page out the least recently used data in the memory to the swapfile in the hard disk. This frees up some memory for your applications. The operating system will continuously do this as more and more data is loaded into the RAM.
However, when any data stored in the swapfile is needed, it is swapped with the least recently used data in the memory. This allows the swapfile to behave like RAM although programs cannot run directly off it. You will also note that because the operating system cannot directly run programs off the swapfile, some programs may not run even with a large swapfile if you have too little RAM.
Increasing Virtual Memory:
Close the programs you don’t need and close unneeded documents in programs you want to keep running
Also, install more RAM
You receive a “There is not enough free memory to run this program …You can turn on virtual memory or increase the maximum size of the virtual … Right-click the My Computer icon on the desktop, and then click Properties on …
support.microsoft.com/support/kb/articles/Q199/3/40.ASP