Haven't used a pagefile/swap partition in Windows nor Linux since about 2001 - when I could afford enough RAM for the programs I need to run simultaneously. Never had a problem. Haven't seen a BSOD on my machines for years. Never hear my HD's crunching themselves through the floor due to paging

Where's this proof that it's bad?
There's a similar division of 'whats best' about swap partitions in Linux, and I can see the point when you have a multiuser server with potentially hundreds of programs started by different users mostly inactive or idling, but using disk as a substitute for RAM is needless when you can buy 4GB for under a ton. Of course, Linux has a rather more mature virtual memory system, which can actually be turned on/off and resized, use network devices for paging etc, without rebooting.
Back on topic : OP: My desktop has an 8GB XP install with a bunch of apps installed on C:. I redirect my user profile to my RAID5 logical drive and keep XP and my most used apps on RAID0. Very fast/easy to image/restore - 'reinstalled' XP in about 5 mins the other week after a slight mishap with VMware (my fault, managed to boot the C: drive as a raw disk from a VM, which the real XP didn't like too much...).
My EEE 901 laptop is using XP installed on the 4GB SSD. I install apps on the other SSD (actually formatted as ext3 for Linux, access using ext2ifs). 2GB free on C:, no probs
