After reading this whole thread, i come with this conclusion:-
1. Doing Ext3 partition on our SD is pointless since it just for storage purpose only (not performance)
2. Swap File (12MB) better than Swap Partition.
CORRECT ME IF I'M WRONG..
a swap partition is far better than a swap file because a swap file runs over FAT16 and a swap partition is 'specializated'.
FAT16 sucks. It's an old filesystem, files tend to get corrupted or broken with time. EXT3 is far better, and E2's performance is really fast when read/write to EXT3. You can read/write EXT3 on windows if you install EXT3 driver.
These are my conclusions, since I've used both systems (swapfile and partitions)
