Sounds about right, I'd guess 2GB of ram +2Gb of swap fills the whole address space in a 32bit machine.
Old kernels only used swap partitions up to 128MB but you could have more than one. A quick search didn't find any definative documentation on what the maximum is or which kernel versions can use large swap files.
The swapfile mini-HOWTO seems to be out of date.
Unless you are trying to do somthing unusuall like a memory intensive calculation you probably don't need 2GB of swap. The old "twice the amount of ram" rule is a anacronism from back when people used xwindow on 16MB machines.
The only time I noticed all my swap being used was when netscape leaked all the available memory, with a lot of swap the machine used to take minutes of harddrive thrashing to recover after netscape finally segfaulted.
Harddrives are much faster these days but I would not expect a machine making use of 2GB of swap to be very responsive.