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Virtual memory is fixed disk space that is reserved for the temporary storage of items that can no longer be held in the server’s RAM. In the Windows Server 2008 environment, the virtual memory is referred to as the paging file (for a look at monitoring page file use, go to Hour 24.
Microsoft recommends that the virtual memory or paging file be equivalent to 1.5 times the RAM installed on the server (however, Windows Server 2008 sets the pagefule to System Manage Size, which could be less than the recommended size, particularly on a server with over 2GB of RAM). If you use programs that use large amounts of memory, you can increase the paging file size beyond the recommendation.