Windows WILL use a pagefile regardless of how much installed ram.
Anyone who says otherwise are wrong.
Even with normal background (system)activity going on and 8Gig of ram then the pagefile will still be in use.
Windows needs it at all times.
I agree with the first half of this. Windows will use a pagefile,
if enabled, regardless of how much RAM you have. Thus, when I disabled my paging file, a fresh boot into Vista resulted in about 1.5GB RAM being used with the paging file off, and a few hundred MB less being used with the paging file on. This was obviously in spite of large quantities of RAM free - bad handling by the OS.
However, since it can be disabled (and because I first reduced its size to 16MB before disabling it I know it could not possibly have had any functional value even if the OS kept using it), Windows certainly does not
need it at all times.
Windows isn't stupid. No operating system is. If you have free RAM, Windows will not suddenly decide to extend virtual memory onto the hard drive. Why would it even do that? I don't understand how that notion is even plausible to these people who say "Disable the page file to make your PC use more of the RAM".
If you run out of RAM, it'll extend its virtual memory onto the hard drive. Otherwise it won't.
The page file is *always* needed for paging which occurs no matter now much RAM you have. Operating systems reorganise memory quite frequently, and this sometimes involves paging things out and paging things back in a certain order. If you took away the page file, this cannot happen so you will be reducing the efficiency of your PC.
That is why it is recommended to have 2 or 2.5x your memory size for the page file - to allow enough room for paging and duplication to restructure and reorganise memory.
It's not important to me
why Windows uses the page file when there is free RAM; the simple fact is that it does (see above). One explanation might be that infrequently, or less frequently used memory is shifted to the page file in case the fast RAM is suddenly needed for applications - seems fairly silly, but could be the reason.
I just checked and Windows recommends 1.5x amount of RAM for paging file size. I don't know how it comes to this ratio but I presume they work on the principle that if you have more RAM, you are both likely to have a larger HDD (and therefore not notice a drop in free space so much) and to use more RAM generally (so are more likely to need more paging file).
Also, why on earth would any OS bother restructuring memory in RAM? Not only is the random access time so small that sequential reads have no speed benefit over random reads, but it would just use up I/O bandwidth and therefore reduce performance. One thing OSs do do however is, when idle, shift memory out of RAM and into the page file. However, this is because OSs also perform other functions (such as indexing) when idle, and these require RAM, so has to free some up. Hardly the same thing as reorganising the RAM.
Got 8gb RAM here, plus a 2GB readyboost (as someone else said, it was going to waste) and I leave mine on

No issues so why mess.
Yes, but then why O/C if it plays games already? To get a few more fps - a boost in performance. Same applies to disabling the paging file - a desire to improve performance.