Hi,
1. Paging size for NT4 should be 2.5 times the amount of physical RAM or 2.5 GB, not W2K.
2. Since you have W2K Pro, you only need about 1.5 times (1.1x min recommended) the physical RAM you have or 1.5GB. To gain the best performance outof the paging file you must know or make best guess as to how the physical disks will be access for read/write and the frequency.
3. Generally, putting the paging file in a least read/write accessed physical disk is the best way to go, assuming of course you set up the paging file right from the beginning before populating the physical disk with data. Putting the paging file on the same physcal disk but separate logical disk yields little in performance.
4. Since your 2nd drive is bigger, I presume that you'll be keeping more of your data there. If your apps access these data in the second physical drive more than the sum of the access by the apps and the OS in the 1st physical drive (C: or D:), then it's better to put the page\ing file in the 1st physical drive.
5. If you want a full core dump when the system (not apps) crashes, then you must have on the OS [logical/physical] drive the paging file of size at least 110% of the physical RAM or, in your case, 1.1 GB paging file in the C: drive.
6. It's also good but to a lesser extent to have more than one paging file (at least one in each physical drive).
7. Fragmentation is a fact of life in NT (NT4 and W2K) that can not be avoided. Buy defragmenting software to automate defragmentation or manually do it periodically.
Confucius