It's not talking about what is happening "inside" the VM. Within the VM you can configure the OS within to use a page file (which would likely go to a virtual disk) or whatever you like/need.
Outside of the VM, from the hypervisor's point of view, you really do not want the RAM that's allocated to the VM to be swapped out - the performance of your VM will suffer greatly.
It may be possible that specific VMs don't allow the memory they've allocated for VM use to be swapped out. The documentation you are reading seems to say that.
So, if you plan to run, for example, a VM with 2Gbyte of RAM continuously, and your host system has 4Gbytes of RAM, you don't need to worry about the RAM that the VM is using ever going to the pagefile when figuring out how big of a pagefile you want.
Bingo i think i understand now i have only been looking at it for half an hour getting more and more confused. Thank you very much, appreciated! – topcat – 2013-03-24T15:04:40.553