Generally 1.5x is a good guideline for normal
servers And 4095MB is the max you can set in 32 bit os unless you hack the registry and separate pagefile in directories.
See this:
Pagefile Optimization
With 64 bit OS you can go well above the 4095MB limit, I'm not sure but we have a 16GB
server with a 1.5x pagefile on 64 bit OS.
One theory is you can have too much pagefile. Some applications will use whatever memory it can grab. This includes the page file. You can imagine swapping in/out of memory to disk is slow. If you have a large pagefile, the app will end up using virtual memory on the disk. Thus if you have a server with 16GB of RAM and a 24GB pagefile, it might actually run slower than if you had 16GB of memory and only an 8GB pagefile because with the smaller pagefile, it will be forced to use more real memory than virtual memory.
However, I've never seen this personally. SQL is about the only app I know that uses memory is vast quantities like this and SQL is smart enought to handle this.