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SQL Server ate a lot of memory

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Last Modified: 2012-05-06
Hi ;

I have a SQL server with 3 instances inside . SQL2005Std,SQL2008 and SQL 2005 Dev Ed. The physical server which holds the instances is 12GB RAM. At all time , the task manager shows that the memory is heavily utilized as follows:-
Physical Memory (K)
 Total               12580524
 Available            208760
 System Cache    498440    

And the PF Usage shows 12.1GB is being used.
When I check , it shows SQL services is using most of it . And I do get an alert " Windows is low on virtual memory " frequently.

I did get to know about this script :-
EXEC sys.sp_configure N'max server memory (MB)', N'1024'
GO
RECONFIGURE WITH OVERRIDE
GO
but I'm worried if it will impact the performance of the SQL itself as it cannot get as much as and when needed.Because the script tend to limit the RAM used by SQl. Please advise on how to overcome  this problem.
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If that is the case , how do I know the optimum RAM that I need to allocate for all those 3 ?  And why it uses so much of PF ?
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thanks guys
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