Raise your hand if you've taken an operating systems class and/or a computer architecture class where they actually go over paging...
* Mike notices that RoD's hand isn't raised.
I would bet that even if you disabled paging that vista still uses it. It is kinda hard to change your memory management model on the fly, especially when it involves using faults/interrupts. I'd imagine that the option simply makes the memory management less aggressive in the use of pages (ie: Maybe page out parts of the OS that aren't being used but not page out applications)
Oh and VBprogrammer is correct and RoD is an idiot.