@ptek
First of all, you should try to reduce Windows' memory usage; there are tonnes of services that isn't needed at all.
Having a small HD for caching and such is nice. A 1 gig HD would probably be slow as hell, but there are 40 giggers with 8 megs of cache. Many of them tend to be quite fast. Personally, I have never experienced any major benefit from setting the swap-file on a separate drive, though I try to reduce swap-file first.
HAving the swap-file on a RAM-disk is incredibly fast. Unfortunately, it only works with Windows 9x (AFAIK).