Hello. OK, well I figured out what I was doing wrong. I never set the C: to not have a page file.
http://www.ehow.com/how_6054256_use-usb-memory-ram-xp.html
@greenestguy
Paging file can't be greater than 4 GB so no need for an 8 GB flash drive. Save some $$.
Don't know why it would be a bad idea since MS did program it into Vista and Win 7 as ReadyBoost. I guess there is always the chance that I won't see any difference on ancient equipment but I can't see how it would break anything.