When you purchase a computer it comes with something called "RAM" - short for random access memory. The reason your computer requires RAM is ultimately for speed. Ram allows your computer to store information in it's circuits as long as there is an electrical charge. The problem with ram is that it is volatile, meaning that if you turn off your computer all the information in your RAM is instantly lost.
As you open more and more program (like iTunes, Microsoft Word, Internet Explorer, etc,etc) your computer uses more and more ram. Once the ram is fully utilized with information that helps operate all the program files your computer would get a "low memory" message.
Virtual memory is a way to avoid and solve this problem. It allows you to allocate a space of memory to your hard drive designated as "virtual memory". So this allows you to open more programs even if you have used up all the memory in your RAM chips.
So, if you had 1 GB of RAM in your computer, and 1 GB of virtual memory to use on your hard drive, you technically have 2GB of memory!
Now here's the problem with virtual memory - because it uses a hard drive to store the data for currently running programs it is much slower to read and write than RAM. This is because unlike how RAM stores data with an electron current (making it super fast), the data on a hard drive is stored on platters. The platters spin very fast but much like a record player there are heads that must physically move to the location where the data is stored to read and write the data. This means that the time it takes to access the data for your running programs will slow down your computer considerably.
Try to avoid using too much virtual memory. Instead upgrade your RAM to ensure your computer is operating at maximum capacity.
Virtual memory, however, can be useful - newer operating systems makes as effective use of virtual memory as possible. Many modern operating systems will store data in virtual memory for programs that do not require heavy read-write access, or, for programs that are opened but have not been used recently.
You may also hear the term virtual memory be referred to as a "swap file" as this is essentially a file that is on your hard drive that can "swap" data from RAM to Hard Drive and vice-versa for optimization.
You can increase virtual memory in windows by right clicking the my computer icon, clicking on the advanced tab and clicking on settings. Try increasing your virtual memory by 50% at a time, or, close a few programs.
You can also get your computer tuned up so that less programs load when your computer starts not only making your computer faster while using it, but also at startup.
In MS Vista, click start, right click my computer > properties click Advanced System Settings on the left pane and the click settings to increase virtual memory.
I added a source with more technical details at wikipedia. Hope this helps!
Chris Botterill
www.exids.com