Virtual memory is just a term for an area of the hard drive that is dedicated to handling the overflow of data from the RAM.
Basically, RAM acts as a buffer between the hard drive and the CPU. Because of the way hard drives are made, they have a relatively slow data transfer rate, generally around 100-300MB per second. Whereas RAM can transfer data around 6-10GB per second (or 6000 to 10000MB per second).
So the computer anticipates what data might be used next, and preloads that information onto the RAM so that the CPU can access and use it faster.
The more ram you have, the more things you can do at once without noticeable slowdowns.
The information you listed says your Virtual memory allocation is 2GB and that you are using .04 of that 2GB currently. Since you are using virtual memory, and virtual memory is on the hard drive (Hard Drive = Slower) you know that likely you do not have enough physical memory.
The page file is just part of Virtual Memory.
You are certainly going to want to buy more RAM, and to make sure you get the correct stuff you are going to want to go to this website and enter your computer information:
http://www.crucial.com
Their program will tell you what type and speed you need. Take that information with you when you go to buy more ram. Alternatively, you could bring the brand and model number of your computer with you to give to the salesperson and they will find the correct type.