VAL has nothing, at all, to do with real memory size. I use VAL set to 2560 on my antique IBM ThinkPad A22e, and it has max memory of 256MB. I can run Firefox (probably v17.0, or so, last time I tried it), but it takes about 30 minutes to get the blank home page loaded. As long s most of the stuff gets paged out, and isn't used much, it works fine. Paging absolutely kills it. Things like Firefox, and AOO, are not written to use paging efficiently (if that was even considered, which is unlikely). My IBM ThinkPad T43 with 1.5 GB, and my antique Asus, with 1 GB, work okay with VAL set to 2560. As Dave suggests, set the swap size plus the real memory size to a total of about 4 GB (which is not necessary, but then it won't spend time trying to shrink it back to the defined size).
VAL is part of the OS/2 addressable space (something less than 4 GB, no matter how much real memory you have), and if you exceed the real memory, it uses the swap file. In fact, it takes an exceptional program to push memory into the swap file, if you have 2 GB of real memory.