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You should be able to cut it down dramatically. Win 7 never exceeded 30 GB when I had it but having 300mb spare is going to cause all sorts of problems.
Here's a guide for changing virtual memory footprint:
http://windows.microsoft.com/en-gb/windows/change-virtual-memory-size#1TC=windows-7
Lol. How big is your partition? (euph)
There's a few other things you can do but dayz takes almost 10 gigs.