There are a LOT of folklore setting guides for virtual memory (page file).
2 times installed RAM is a hold over from Windows 3.1
Setting a fixed size page file is also a hold over from the past.
The "advantage" of a fixed size page file is that neither the page file, or user files get fragmented as the page file changes in size.
The negative of a fixed size page file, is if it is too small for your needs, your system can crash.
Here is a link to a good article on Optimizing Virtual Memory in Windows XP.
http://www.aumha.org/win5/a/xpvm.htm
Since XP is built on the core W2K code, the advice applies to W2K.
Having the page file on a separate hard drive has advantages:
Files on the primary drive do not get fragmented as the page file changes in size.
If the page file is the ONLY file on the drive, it will be located at the start of the drive where access is fastest.
The page file can be accessed while files are being accessed on the main drive.
One negative of having the page file on a secondary drive is that W2K needs a page file on the boot drive to perform a memory dump.
Ideally, you would want the page file on your SATA drive, as that has the fastest data transfer rate.
However, any performance improvement to be gained from having the file on the SATA drive would be lost in the compression / decompression process.
You should only use a compressed volume for files that are seldom accessed.
What would I do?
Back up the files on the SATA drive.
Delete the partition.
Create a new extended partition.
The first logical drive on the partition should be between 2 and 5 GB.
Use this drive for your page file.
Use the remainder of the drive for your data storage.
You might want 2 logical drives rather than 1 for data storage.
Leave the first volume uncompressed, and store files that are used often there.
Compress the second volume and store seldom used files there.
Chas