Keep in mind, I also work with extremely large graphics files and > 700meg .WAV files at times, so the 1024meg setting is for how <i>I</i> work, it might need adjustment to be smaller if you have that much ram, and hardly ever hit your swap file, you can save disk space by making it smaller.
If you leave it automatic, windows might decide to change the size of the swap file while you're recording resulting in crackles - so don't do it, at least definitely dont do it in 9x...