OH Heck I'll just put the links in a separate post, less confusing:

Google on "VM Size":
http://www.google.com/search?q=VM+Size&sourceid=opera&num=0&ie=utf-8&oe=utf-8

----------------------------------------------------------------------
First Hit: "What does Mem Usage and VM Size mean on Task Manager's Processes tab?"
http://www.jsiinc.com/SUBB/tip0700/rh0722.htm

Mem Usage - is the working set size. It is the amount of physical memory which is directly (currently) allocated to the process. It can be accessed without causing a page fault. This includes pages shared with other processes.

VM Size - is the total private virtual memory allocated to the process. This is the number you see when you use the Process Private Bytes counter in Performance Monitor.
----------------------------------------------------------------------


{Underlining above is mine}. "VM Size" more accurately measures the amount of memory the process requires to run, which is private and not shared by any other process. I'm not clear now whether "VM Size" ever involves paged memory, your screenshot may indicate a process that is using a lot of paged memory in order to run.

My screenshot for the Microsoft A.S. Beta processes is more typical. Usually the "VM Size" will be smaller than the "Mem Usage". I have 1024 Megs of RAM on this box and rarely does it need or use any paged memory from disk.