There's a new FAQ from Adobe on optimum memory settings for best performance in After Effects CS4 and CS5. It's really a set of links that includes the Help pages on tips for performance improvement and RAM usage in After Effects.
Those pages are detailed and thorough, so it might be good to start with a recent AETtuts quick tip by Won Novalis, Understanding Memory and Multiprocessing, which was 'blessed' by a link from Todd Kopriva.
Update: see also Faster by Michael Coleman.
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