The nexus is how much system ram it uses. If you set it to 256 it will take 256 megs of SYSTEM ram when it loads. I believe the default is a nexus of 30 so that would take 30 megs of SYSTEM ram when it loads. Also, I believe (could be wrong) each model loaded counts for ~1 meg of SYSTEM ram minimum (two entities using the same model would only take 1 meg). A terrain with a lot of vertices (like 130,000 polygons) will take up much more than 1 meg of SYSTEM ram however.

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