Virtual memory is swap space on your harddrive. Theoretically, you don't use it until you run out of RAM, so it's not "extra" as in being additional to your system memory. If you have a HDD rather than SDD, using swap space significantly slows down your computer. Indeed, in special cases we might even disable virtual memory all together so that a system runs smoother, rather than slowing down whenever Windows *thinks* it should be swapping (paging). To clarify, the disk space is used as RAM, but in a HDD access is hundreds of times slower. That's not good.
The long and short of it is that your computer is only supposed to do swapping when it can't keep up with everything it's been tasked with. Swapping is generally a bad thing. Now it's not completely bad, because at that point it would start spewing errors all over the place if it didn't have this so-called "virtual memory" to pick up the slack.
In general, you only want to increase your virtual memory if you have an application saying it needs more.
P.S. I didn't even realize it, but I do have my virtual memory set to zero right now in Windows 7. I had completely forgotten about that, it's been like that about 4 months. I don't recommend this, as some application do demand they have some swap space. But I'm a gamer, btw.