XP will use physical RAM when applications want it or it
determines it needs to use some to cache information.
In certain cases where applications have reserved RAM,
but haven't touched it yet, XP will put a "charge" into
the pagefile and not physical RAM, but when the
applications decide to use it, it will be in physical RAM.
This is a very very simplistic overview, how it actually
works is quite complex, but don't worry, XP will use the
RAM when needed.
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