With 1 gig of ram, you should not need much paging file, if any.
I personally would have a page file of 1000Mb min and 1000Mb max for that amount of ram, just in case.
If you have a slave drive or partition on the main hard drive, I would move it to there. You will probably not notice the slightest difference, with 1 gig of ram, over normal running.
It's just if you do have a paging/swap file. It's better off the main "C" drive and at a fixed size. This will stop the swap file shrinking and expanding, when running. It will also cut down on the fragmentation of files on the "C" drive.