eww...
"In OS 9, if a Mac has more than a certain amount (512MB?) of RAM installed, VM is automatically disabled — and can't be enabled."
Actually at 1GB is the point where Mac OS 9 disables VM so at common available configurations, 768MB, VM should be able to enable.
There is also a RAM disk trick if anyone has reached the disabling VM 1GB maximum limit for Mac OS9. Enable a RAM Disk for example 256MB then enable VM accordingly. Now I do believe you can enable VM at a slightly higher state, as the limits then become independ from one another. But it is best to test that out on the machine because of other possible constraints. (Example:: 1GB installed, 256MB RAM disk-Enabled,
VM+1 of the 768MB maybe possible. However with all that memory memory it isn't worth pushing it)
...Ron