Virtual memory
 is simulated RAM. When you have used up all your RAM, your computer 
will shift data to an empty space on the hard drive. The computer swaps 
data to the hard disk and back to your RAM as needed. When you increase 
your virtual memory you are increasing the empty space that is reserved 
for your RAM overflow.
Also having enough available space is absolutely necessary for your virtual memory and RAM to function properly. 
How To change the size of the virtual memory paging file?
You
 must be logged on as an administrator or a member of the Administrators
 group in order to complete this procedure. If your computer is 
connected to a network, network policy settings may also prevent you 
from completing this procedure.
1.Open System in Control Panel. 
2.On the Advanced tab, under Performance, click Settings. 
3.On the Advanced tab, under Virtual memory, click Change. 
4.Under Drive [Volume Label], click the drive that contains the paging file you want to change. 
5.Under Paging file size for selected drive, 
click Custom size, and type a new paging file size in megabytes in the 
Initial size (MB) or Maximum size (MB) box, and then click Set. 
If you decrease the size of either the 
initial or maximum page file settings, you must restart your computer to
 see the effects of those changes. Increases typically do not require a 
restart.
Note:
To open System, click Start, click Control Panel, click Performance and Maintenance, and then click System. 
To have Windows choose the best paging file size, click System managed size. 
For best performance, do not set the initial 
size to less than the minimum recommended size under Total paging file 
size for all drives. The recommended size is equivalent to 1.5 times the
 amount of RAM on your system. Usually, you should leave the paging file
 at its recommended size, although you might increase its size if you 
routinely use programs that require a lot of memory. 
To delete a paging file, set both initial 
size and maximum size to zero, or click No paging file. Microsoft 
strongly recommends that you do not disable or delete the paging file.
Source: microsoft.com

 
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