OK, so for those that don't know Virtual Memory/Swap is like adding in more RAM for the processor to use. You can get away with running larger programs or work with bigger files typically for a slight performance hit.
What I've done so far is got swap support in the kernel and added a setting in koumamod.apk to adjust the "Swappiness" setting, which is a number from 0 to 100 representing how often the system will move things in and out of the swap ram.
Linux defaults to 60 for this, Android defaults to 0 (because there isn't any swap by default and Android likes to kill processes that aren't active if memory gets low)
I've been using a partition on my sdcard for swap so far. It caused my phone to be a hair slower at times, but barely noticeable. However, I was able to open a flash game on facebook in Dolphin HD and it didn't lock my phone up like usual
I'll give the storage that is usually /data a try and see how it does. The nice thing about the swap system is you can use a bunch of swap partitions/files at once and assign them each a priority.
It seems like there is a lot of interest in this, so I'll roll out KoumaKernel 2.5 tomorrow, and work on adding more features to the koumamod menu.
BTW, the koumamod menu is not CTMod exclusive, only the version that hides it's icon from the app drawer is.
I think I put a version for all other mods that use KoumaKernel in the KoumaKernel thread