I'd like to see evidence that Virtual Memory is becoming less important
NT depends on Virtual Memory just as much as any other operating system post DOS 6.2x
I studied this area in depth for a thesis, and it would appear that the more memory you add to a system, the more you need a pagefile/swapfile. The Virtual Memory Manager will put stuff into the swapfile on a "just in case" basis, and, depending on the algorithms, it wil put stuff there just because it's been in RAM for a preset period of time. Windows NT uses a combination of both (and others). The bigger the map of RAM it needs to keep, the bigger the index, hence more space is needed on a system with a large amount of RAM.
A static swapfile is the best option, because it prevents Windows VMM from actively resizing the thing while you're working, and prevents fragmentation, as was pointed out above. It should be placed in a contiguous area on a freshly defragmented hard disk to prevent the problems InsanityRmx was experiencing.
I've written an FAQ on Virtual Memory, based on my early notes, on this forum. Much of the information is from lecture notes and technical sites, most of which I can provide links to. It's by no means perfect, but some of the information may be useful.
For CD burning especially, swapfile optimisation is important. The image is spooled into two places almost simultaneously, because you probably don't have the RAM for an entire CD. Even if you did, it would still be spooled in
1) The Burning software's temp dir (which should ideally be contiguous space)
2) The swap file.
I hope this helps