Question on memory info in Activity Monitor

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I've just had a shufti in Activity Monitor at the System Memory page and I see that there's a Virtual Memory column, but the figures in there seem very high!

I assume that OS X virtual memory doesn't work the same way that it does in Windows, but what does it mean, how does it work, especially seeing as I've got plenty of real memory free? It indicates Firefox is using over a gig of virtual memory, but that can't be right with all the free RAM I've got can it?

Activity_Monitor-20080419-171213.png


I just like to know what's going on and why!
 
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