Some people will disagree with that, others will agree and others still will tell you something all together different. I have found that when playing with the Pagefile, you have to just try asnd see, I'd suggest setting it to around 300 MB max and min. May want to go a little higher or lower but 300 is a good start to work from. You may find that setting it to a very low number is enough for your applications, It really depends on the software environment and what you use the system to do.
Some people will tell you to disable it but if you do you will have problems from programs which need it, when they can't find it they will assume you have no more available memory and give an error.
Personally I'm using Win XP and have 1536MB DDR and have a pagefile of 348 MB, that seems to work best for me because occasionally I do use a good deal of it in Photoshop and some 3D Apps but most of the time less than 20 MB of the pagefile are used and around 200 or so MB of physical RAM are used.
Oh, btw the story about people using no Pagefile in XP 2K or any other Win OS also depends on the types of apps you run, like I said above, you may get good results but just as many people get bad results as was the case when I tried disabling it in XP. I have never tried disabling it in 2K though I did set it to 200 MB in a system with 768 MB DDR and got very good results with that combo.