Theoretically it can but A: if you're up to the 2GB per application limit (assuming you are using a 32 bit OS) then virtual memory can't help you and B: Virtual Memory is much slower than physical memory, so you wouldn't really want it to be used anyway. Not to mention that in some situations it may be memory *fragmentation* that is causing problems, if the app is unable to allocate a large enough single block of memory for its needs. This is why restarting an app or your OS can often help with demanding renders.
- Oshyan