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using the dynamic memory option

"using the dynamic memory option" .What does it mean ? Can anyone brief it in case of a server with 328MB RAM. How to set that?
It’s the default setting. Tom Pullen
DBA, Oxfam GB
Thank you thomas.
Then default config is 4mb to 2GB .
Does it mean it will eatup all memory as required by server? leavein only some memory for OS. pls reply

SQL Server grows and shrinks its memory usage dynamically by committing and de-committing buffers from the buffers reserved at startup. The LazyWriter process is responsible for growing and shrinking the BPool. A committed bitmap array is maintained to track the commit or de-commit of buffers. For the default values mentioned, the MemToLeave area evaluates to 256 MB on SQL 7.0 and 384 MB on SQL 2000. The -g startup parameter can be used to increase the external needs setting. It is default setting to use DYNAMIC memory and if the SQL Server is experiencing any issues you can investigate using PERFMON or PROFILER for slow running queries. Satya SKJ
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