SQL Server 7 and higher dynamically handle memory. Adjusting the memory settings is not recommended. If needed, you can do this by setting the Min and Max Memory server options.
In reality, too little memory will adversely impact performance but most performance problems are caused by:
1) Poor query design
2) Lack of proper indexes on tables
3) Poor database design
If all those issues are taken care of and performance is still bad, you should analyze whether the performance problems are related to the SQL configuration, lack of memory, lack of disk space, poor i/o performance, processor usage, etc.
for more information about performance tunning. Terry L. Broadbent
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