The only way to gain anything by moving the swap file would be to move it to another hard drive. Moving it to a virtual drive will give it its own free space, but you can do that without moving it simply by allocating a specific file size.
Look at point 12 of this post http://www.computing.net/windowsme/wwwboard/forum/18106.html
If you have the room to do it, there IS a performance boost by doing this and there is also potentially fewer errors and less difficulty defragging, but it's not a mission critical adjustment. I put the swap file at the top of my hard disk using Norton Defrag after I set it at 1 Gb usually, or sometimes even 1.5Gb and I have definitely noticed improvements on some systems by doing this.
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