The RAM is just nice for the housekeeping (put these bytes here for a minute, okay now burn them on the disk). If the software needs more room than you have RAM available, it'll just use the hard drive as a temporary swap file area.
I will suggest you try to keep the operating system drive at least 25% free and defrag it once a week or more. If you're going to do a lot of DVD burning you might want an extra hard drive just for the space to store disk images and make it easier to organize your files and stuff.
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