In general the defaults are pretty good and in most cases shouldn't be changed unless you have a good reason. The exception is the max memory if the server in question has lots of memory (which your doesn't)
It's usually recommended that the OS, the SQL data file and the log files all go onto separate physical drives. You only appear to have one drive, so that's not possible.
p.s. Please post in the appropriate forum next time
Microsoft Certified Master: SQL Server, MVP, M.Sc (Comp Sci)SQL In The Wild
: Discussions on DB performance with occasional diversions into recoverability
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