I've got 2GB of RAM and 3.5GB of swap, so I'm not running out.
Hi JonT,
It doesn't matter how much RAM or swap you have, on a 32 bit machine, any application is limited to 2GB of addressable memory. The swap space is used by the operating system as a temporary storage space for all applications running (including portions of the operating system itself). So if you had 3 applications running, each of them can use up to 2 GB of memory. But obviously they can't all live in memory at once, so the swap space is used to keep the parts of memory that aren't immediately needed. The more memory you have, the more the operating system can keep in live RAM, and therefore fewer swaps and faster running times.
The rest of the 2GB that seem to have gone missing is usually because of memory fragmentation (holes in memory), and the way the operating system loads DLLs in memory. For example, Houdini could ask for 200 MB, and even though there is 400 MB available, none of it maybe in a straight 200MB chunk, so the operating system tells Houdini it can't have 200 MB of memory, and Houdini crashes.
Hopefully that helps explain the situtaion, should you care about all the detail

.
George.