You can do it this way - the reason for having the swap file in the root would be if you were concerned about saving crash dump information. If you move the swap to another partition, you would not be able to do this.
Many report a slight increas in performance by moving the swap file, and do this once the system is "stable".
To avoid space issues, your best bet is to upgrade the hard disk in the Terminal Server and partition it;
Partition 1 (4Gb): Terminal Server O/S only + swap file (if crash dumps needed).
Partition 2 (As much space as needed): Applications.
Partition 3 (or separate disk) swapfile (for performance).
For preference you would have 2 disks in the server, at RAID 1, for your O/S.
Thanks people. Will move the page file when no one using server. Don't look at Crash dumps and system relatively stable. (As stable as Windows get)
The C: partition was created with only 2Gb hence the problem. Do not want to go through the process of repartitioning unless there are no other options.
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