Virtual Memory (aka pagefile or swapfile), if left to the OS to manage, is set to approximately (RAM)x(2). Many people over- ride OS management & designate their own size &/or location rather than let Windows do it.
You can view &/or control your pagefile settings at
Control Panel > System > Advanced > Performance Options > Change
If you already knew all this and the system is not retaining the settings you have designated then your problem is most likely due to file system errors on whatever volume(s) you have assigned the pagefile to. Run CheckDisk via
> Highlight volume (eg: d:\) in Win Explorer
> Right-click + Properties
> Tools + Check Now
> checkbox both "...fix file errors"
& "scan for ... bad sectors"
Do this for all your volumes (virtual drives): start with C:\ and work your way down the list. The scan for 'bad sectors' is very slow, so if your volumes are large (or you're generally an impatient sort) you can first scan only for 'file errors' then come back and perform 'bad sector' scans if no file errors are found - but it's wise to include the scan for bad sectors if you can stand the pain. Both must run at boot-time, so set it then reboot, then watch for error report at the end of the scan.
Often error messages like yours are due to recent removal of the volume &/or disk previously designated by the user as the swapfile volume. Also may happen if you have filled-up the designated volume: there's no room for swapfile activity. This *usually* only occurs if user has taken control of swapfile management: if Windows has control it will move swapfile around to where ever the space is.
At 128 you are rather short on RAM for any memoryintensive computing. If you can spare the dough boost it to 256 or more.
Gluck!, Jonathan