"For a dedicated database server, the default memory settings for SQL Server should suffice."

Not sure I agree with this (the context is having AWE enabled)

This means a SQL 2000 instance with AWE enabled will leave only 128MB for the OS.

Having seen this happen, I can say with confidence that the OS will start paging like mad and cause some frantic phone calls from the WIndows team...

Always set min and max memory with AWE enabled on SQL 2000.