update: i set the Pagefile min to 512m and max to 4g, been running the PC all day, keep checking the size and it didn't go above the initial amount of 524meg.
so far it seems if you have a truck load of physical RAM, you can do with a really small PF.
I typically keep 1.5GB on my 2GB "classic" xp machines.
Unless something is causing me a problem I just go with Windows recommended defaults. The guys that built my operating system know far more about it than I do.
But..but.. once you understand virtual addressing, you'll see why a small pagefile is useful on even big systems. Systems with enough memory that you think you'll never need a swap file. (!)
I prefer smaller PFs. I set mine to 256MB minimum and 4GB max. I have 4 GB RAM. If you are not sure, you better leave it at default values, which is the amount of physical RAM in W7 (to do that stupid memory dumps - which I also have disabled btw).
Having a big PF with 2GB+ of RAM just tends to take up space and it could be difficult to defragment.
Been using the old 1,5x "rule" with low RAM PCs. I've 8GB RAM and had ~6GB Pagefile (on a HDD, not SSD), but recently changed it to min 512mb - max 512mb and moved back to SSD. Seems to work nicely and doesn't wear out or take too much space from my 128GB SSD.
The more amount of physical RAM you PC has the less amount of pagefile it needs.
Yes, it's inversely proportional. When adding RAM sticks you can reduce PagingFile size.
Not to worry about it being undersized cos if your PagingFile is set small, when more space is needed Windows will simply overwrite according to the Least Recently Used page replacement algorithm.