This article is from the Computer viruses FAQ, by David Harley D.Harley@icrf.icnet.uk, George Wenzel gwenzel@telusplanet.net and Bruce Burrell bpb@umich.edu with numerous contributions by others.
People are sometimes alarmed at finding they have a hidden file
with this name. It is, in fact, created by Windows 3.x when you
configure it to use a permanent swap file (a way of allowing Windows
to work as if you had more memory than you really do. On no account
should you delete it, as it will upset your configuration. If you wish
to remove it or adjust the size, do so via the 386 Enhanced
setting in Control Panel. However, a permanent swap file usually
improves performance on a machine with relatively little memory.
The file is not executable as such, and reports of virus infection
are usually false positives.
 
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