The short answer is no.
USB drives are no match for internal hard drives in terms of performance, so there’s nothing to be gained. However, there is plenty to be lost in attempting to use a USB key in this way.
One problem that paging files suffer from is that they fragment over time. XP is far more efficient at managing the paging file compared to earlier versions of Windows, but it will still eventually fragment on a well-used drive. The general advice is that, if you’re determined to move the paging file to another drive, you should choose the least-used partition on the fastest drive. With this in mind you may want to consider, space permitting, creating a dedicated partition on which only your paging file is stored. It wouldn’t need to be a large partition, 5GB should be ample, and you might find performance improving slightly.
On the whole, however, there’s not an awful lot to be gained by doing so.
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