I have 1GB RAM also, and I disable paging file. it runs fastest with paging file disabled.
but I also run my system pretty lean - I disable themes, system restore etc.. and my Antivirus program is very low on resources (Antivir Personal Edition)
if you can set this amount in it own partition at the beginning of the second hard drive if you have one. I would not disable it, because it is nice to have the extra headroom.