You can swap, but it won't really help.
Current SD cards are about 6 years behind hard drives, in terms of speed. To say again, the average SD card that you buy now is capable of about the same speeds as hard drives from 6 years ago.
Now true, we've been swapping for about 15 years, but applications have gotten larger necessitating more swap. Swapping a 100k program in and out of memory is different from swapping multimegabyte web page cache.
If you're reaching a point where you are filling the 256MB on the Pandora and need to start swapping, odds are you're falling into the multi-megabyte category, in which case speed is essential. SD cards just don't have that kind of speed.
There should be no need for swap space so long as you remember one very important thing: the Pandora is not a full blown desktop computer. It can do computer things, but if you treat it as a desktop replacement and try to do all the things you might do with a desktop you will be disappointed. It can multitask, but that doesn't mean you should run a dozen different applications. If you find yourself running out of memory, kill some of the unessential things you've got running.