Some things don't change much.  Virtual Memory is still here and still needed.  I've read that there are programs (games for example) that won't work without a swap file (or paging file), even with plenty of memory onboard.

I use a fixed ("permanent") swap file whose minimum and maximum sizes are the same, which stops Windows XP from shrinking and growing the file on the fly, which in turn spares the hard disk from churning and grinding needlessly.  Because I'm incredibly sick of the whole swap file size debate, I applied some very simple math to the question: I multiplied my physical RAM (288mb) by 2.5, which equals 720, and put that number into both boxes.

To get to Virtual Memory settings, do this:
    - Right-click My Computer from the Desktop or the Start Menu, choose Properties
    - Click the Advanced tab, then the Settings button in Performance
    - Once again, choose the Advanced tab, then the Change button under Virtual Memory
    - Select Custom size, type in the numbers you want for Initial and Maximum sizes
    - Click Set, then OK until you're out of all the dialogs.

Windows XP may want to reboot, depending on what changes you made to Virtual Memory.  I noticed that a reboot doesn't happen if the paging file is being enabled or resized-- disabling Virtual Memory is another matter.

And now for the thoughts of others on Virtual Memory in Windows XP:
    - Virtual Memory in Windows XP (Windows Support Center)
    - Understanding Virtual Memory (Tweak Hound)