memuse reading virtual memory correctly ?

do i understand correctly that by virtual memory,
memuse (0.4 I have) means the paging file?

mine is currently set to 3gb on a second harddrive (not on C:)
memuse says 1,989,263,360 kb i presume, which would make it roughly 2gb.
I have 2gb ram which is showing correctly.

I'm wondering because -
I've been having problems with one programme in particular -
it is an old (1999) programme & I've just installed on new dual-core pc
When I try start it first time from desktop shortcut it complains about not enough memory
Second time it starts but forgets all preferences selected from last time.

I dont expect you to solve the problems with programme !! -
just wondering about the pagefile if windows is even using it properly..
& wondering if i understand the memuse figures

(To complicate things apparently theres a hotfix often necessary for xp sp2
if you have more than 1gb of ram. I was having trouble hibernating - error was
"Insufficient system resources exist to complete the API"
but the hotfix (http://support.microsoft.com/kb/909095) fixed that...but not the above problem)

thanks, tom