Virtual memory is used off of every partition, you are going to have a page file on the C drive no matter what, you can't get rid of it. I see no reason at all to create a separate partition for virtual memory.
How does fragmentation have anything to do with page files/virtual memory? Putting in another partition would make the drive fragment faster, because it would have less space to put files in.
just defrag often, i reccommend diskeeper, and also defrag the page file if needed
The page file is part of the C drive
But if you put another partition to use as the page file, defragging it wouldn't do any good, because it is used as RAM; hence the data is constantly in and out of the hdd.