[Stuff deleted]

Well, someone at Microsoft told you wrong.  Windows will use a swap file
larger than the recommended size.  Last summer I went to a Microsoft
Windows 3.1 Technical Workshop and they distributed A LOT of information
that the general public might not be aware of.  Anyway in the main book
they handed out they have a section on "Creating larger than recommended
swapfile".  I'll quote the information

  If you create a permanent swapfile larger than the recommended size, you
  will receive a message telling you that Windows will not use anything
  larger than the recommended size.  THIS ERROR MESSAGE IS INCORRECT, we
  will allow the use of the larger swapfile, up to four times the amount
  of RAM on your machine.

So as you see, Microsoft does know that the information is incorrect.  You
probably just ran into some doofball who was new on the job and was only
telling you what little he knew.

Be that what it may, I would really suggest to everyone to take the
opportunity to go to these Technical Workshops.  They aren't actually
incredibly in-depth, but you do get a lot of material about bugs and
optimization straight from those in the know.  Besides that they offer
you HUGE discounts on software.  If I remember correctly, you could pick
up Word 2.0, Excel 4.0, or whatever their presentation program is for $130.
That is the full blown version, not an upgrade or educational version.  You
could also pick up Microsoft Office for $500 or something like that.  Myself
I sprang for Word.

Well, hope that was helpful to someone.  And besides that I hope someone
will go to a workshop and save a little money.

And if anyone at Microsoft is reading this -- I really love your products.
I need a job once I graduate also, can we work something out?  ;-)