Here's the scoop on the memory slider:

Photoshop measures RAM and then subtracts a very rough estimate of how much
the OS needs and how much is needed to hold Photoshop's program
instructions, and calls that 100%. Photoshop can never use more than 2GB. If
you're mostly working only in Photoshop, numbers from 90-95% are probably
fine. By "working only in Photoshop", I mean not having other applications
doing actual computation in the background. Just having other apps launched
and inactive doesn't matter much. If you have lots of RAM (1GB or more)
numbers in the 95% range are fine. If you have more than 2GB RAM, tell
Photoshop to use 100%.

Setting the slider too low will cause Photoshop to leave memory unused that
it could be using. The symptom of that is that the efficiency number (in the
info box at the bottom of the document number) starts dropping. If the
efficiency number is less than 95% or so, Photoshop is moving image data to
and from the disk during normal operations, and should try increasing the
memory slider.

Setting the slider too high used to cause Windows 95/98/ME to be unstable,
but that's generally not an issue with Win2K, WinXP, or MacOS X.

Setting it too high -- not leaving enough memory for the OS and other active
applications, will cause Photoshop's memory to be paged out by the OS. That
hurts performance a lot -- even more than Photoshop moving stuff to the
scratch file.

One way to see if the percentage number is too high is to look at the OS
performance monitor and check the paging rate (*) during typical operation
in Photoshop. If you see many pagins and pageouts (more than a couple per
second), the OS's VM system is moving stuff in and out from disk, so you
need to reduce Photoshop's memory slider.

If you can't find a point that gives you a 95+% efficiency and a very low
paging rate, you need to add RAM. Remember you have to restart Photoshop
after moving the memory slider for changes to take effect.

(*) To check the paging rate on OS X, open a terminal window and enter
"top". That's the Unix performance monitor. At the bottom of the first clump
of info is a line that will look like:
VM: 3.47G + 3.62M   47818(0) pageins, 107895(0) pageouts

The numbers in parentheses before pageins and pageouts are the number of
disk read and write operations over the last five seconds (the display will
update every 5 seconds).

On Windows, run Administrative Tools->Performance, and add a performance
counter (right click on the graph area and pick, "add counters..."). The
counter you want is in the Memory "performance object" and is called
Pages/sec. 

We're working with the OS vendors to remove the need for the memory slider
in the future. 
 
Russell Williams
Photoshop engineering manager

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