Ok, I did the test and was watching when it crashed.
This is what it looks like now, idling (this is after the crash.) (Note that before the crash when it was idling, the "paged" kernel memory was lower than it is now.)
http://i51.tinypic.com/1j672x.png
And unfortunately during the crash, the computer was focused on the game screen so for some reason I pressed prntscrn a couple times but later I found out it didn't work... I had planned on screencapping the whole thing, but in fact all I know is what the "available" physical memory was, which is I think the key stat.
As you can see, by "default" or while idling the physical memory has about 500000 (mb?) available, according to task manager. When it crashed it was about 80000, I think. Weirdly it didn't seem to be "draining" really, it had gone below that near the beginning of my play (if I'm not mistaken down to 1000 only?!! Is that even possible? Perhaps I'm mistaken), and it had also gone higher. It didn't suddenly funnel down to 0 and crash. I think 80000 was about standard.
I was in Cheydinhaal about to go get my reward from Oreyn (or Ordreyn or something) in the Fighter's Guild for wiping out the townsfolk murdering trolls (sorry for spoilers.) I was hopping all the way.
So, those are the results of my testing. Hopefully you guys can help. I know I need more RAM, it's just I don't know if I want to spend that much on THIS computer...
I guess if I got a new one I could re-use it or something.
PS: When the game sort of froze for a second or two (not crashed) my cpu usage would go to about 5-7%. I assume that's normal since the game isn't doing anything for a sec?