Hmmm.... it's not doing either. I was also under the impression that it would just create a new one if there wasn't one there, but that's not happening here. I really don't fancy having to do my second re-install of NT in a week
Followiing the installation of an updated version of Plextools (v1.10C, if you are worried), it would not boot to NT in either normal or VGA mode, just gave a BSOD with a KMODE exception Unhandled in NTOSKERNEL. I had SysInternals DeFrag running during boot, and noted that it couldn't find PAGEFILE.SYS.
I had a DOS boot on the same machine, and there was no PAGEFILE on the root of the FAT partition. It has not re-created the file, and me creating a 0 byte file with the correct name and attributes has made no difference either. I'm stuck. Any other ideas?