Personally I've never tried over 800 and that was when I tell it to use 8 cores on my i7. And I run 64bit with 8 gigs ram.
I'll have to make a decently memory intensive scene and try out various memory values when I get home to see if it really plays much of a role. But as Oshyan and I mentioned earlier, even if it does improve speed, you need to find your limits which 2600 is out of the picture, try 800, then 1200, then 1400, 1600, etc to see what is a good balance for speed to not crashing your render.
And as Oshyan mentioned, relying on virtual memory will not help your speeds for sure, virtual memory uses your harddrive. Thats the worst storage speeds available on the computer.
Which is why I was wondering your computer specs, as if you are relying on virtual memory a lot, then it could be you see speed differences depending on how much actual physical memory terragen was given vs virtual during said renders and not as much of how much you set to be allocated.