Let's look at few basics.
Your PC has random access memory, or RAM - shown as Total Physical Memory -
being 512Mb.
If you look in Task manager you get more Information, including Page File
and Commit Charge.
The Available Memory parameter:
This parameter shows the latest observed amount of physical memory, in
megabytes, available to processes running on the computer.
Memory Usage parameter
This parameter shows the memory utilization for the monitored Windows
computer.
Memory utilization is the ratio of Memory:Committed Bytes to Memory: Commit
Limit. Committed memory is physical memory in use for which space has been
reserved in the paging file should it need to be written to disk. The commit
limit is determined by the size of the paging file. If the paging file is
enlarged, the commit limit increases, and the ratio is reduced.
The page file is created during the Windows XP installation and resides on
the hard drive. Page files are also measured in megabytes. XP creates a page
file which is 1.5 times the amount of installed RAM. Thus if an application
or process is idle, Windows may move all or part of its code out of RAM and
onto the Hard Drive Paging File.
In your specific case, at that time the computer had applications and
process opened that used 260.10Mb of the 'Available Memory' and yuou would
not expect to see the paging file 'working', that is to say when your demand
for RAM doesn't exceed the Physical Size of Memory, then you will not hear
the information being moved in and out of memeory and onto and off the HDD.