In activity monitor this is what is shown. Is all this inacitve memory normal? I'm curious because its showing I have a few mb on the pages out which I thought should be zero.
In case you don't know, inactive is essentially the same as free memory. Here is Apple's document on the different types of RAM.
Has your computer been running for a while and are you running demanding apps? That amount of inactive suggests that you've been running a lot of stuff. It's retaining all of that RAM data in case you want to use those apps again, but will free up that space if necessary.
A few page outs are essentially inevitable. There will be brief moments (particularly when running demanding apps) when all of your RAM won't be enough and it will have to page some out to disc. They're typically brief periods of time, and your ratio of page ins to page outs suggests that it's not happening frequently.