Precision 360 XP SP3 update problems: "virtual memory minimum too low"

I regret attempting to update to SP3. I was up to date and running fine prior to SP3. Error message "Virtual memory minimum too low". Update hangs at "Finishing installation", "Running processes after install". The machine has 2 GB of RAM and the paging file is set at 3072/4096. Can anyone help?

I have been able to restore the PC to its previous state. (A second attempt to update had the same result.)

Any help would be appreciated.