The Final Word On Swapfile, Or Pagefile Dump
This comes right from Microsoft Article Q197379 - Configuring Page Files for Optimization and Recovery
If I were you, I would definitely click the above link before or after reading this!
Configuring Page Files for Optimization and Recovery
Microsoft Windows NT Server versions 3.51, 4.0
Microsoft Windows NT Server version 4.0, Terminal Server Edition
Microsoft Windows NT Server, Enterprise Edition version 4.0
Microsoft Windows NT Workstation versions 3.51, 4.0
Microsoft Windows 2000 Professional
Microsoft Windows 2000 Server
Microsoft Windows 2000 Advanced Server
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Windows NT Server and Windows 2000, by default, will place the pagefile on the boot partition where the operating system is installed. To determine the size of the pagefile multiply the amount of physical RAM by 1.5. However, placing the pagefile on the boot partition does not optimize performance because Windows NT and Windows 2000 have to perform disk I/O on both the system directory and the pagefile. Therefore, it is recommended that you place the pagefile on a different partition and different physical hard disk drive so that Windows NT and Windows 2000 can handle multiple I/O requests more quickly.
However, completely removing the pagefile from the boot partition does not allow Windows NT or Windows 2000 to create a crash dump file (Memory.dmp) should a kernel mode STOP error occur. Not having this crash dump file could lead to extended server downtime should the STOP require a debug to be performed.
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OK, Here it comes 
The optimal solution is to create one pagefile on the boot partition using the default settings and create one pagefile on another less frequently used partition. The best option is to create the second pagefile so that it is on its own partition, with no data or operating system-specific files.
Windows NT and Windows 2000 will use the pagefile on the less frequently used partition over the pagefile on the heavily used boot partition. Windows NT and Windows 2000 use an internal algorithm to determine which page file to use for virtual memory management. In the above scenario, the following goals of the page file would be served:
The system will be properly configured to capture a Memory.dmp file should the computer experience a kernel mode STOP error.
The page file on the less frequently used partition will be used the majority of the time because it is not on a busy partition.
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I've heard this a 1000 times, now here it is from the horses mouth.......
Another advantage of using a pagefile on its own partition is that the pagefile will not become fragmented. If the pagefile is on a partition with other data, the pagefile might experience fragmentation as it expands to satisfy the extra virtual memory required. A defragmented pagefile leads to faster virtual memory access and improves the chances of capturing a dump file without significant errors.
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For more on Page Files See These 30 Articles
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