Currently Vista reports the amount of RAM that it is able to use, which is around 3GB no matter how much more you actually have. With SP1 it will report the amount of RAM that is actually installed. So Vista knows there is 4GB of RAM in there, but still can't access all of it because of the intrinsic limitations of 32-bit operating systems.
The insurmountable problem is that 32-bit operating systems are limited to accessing around 3GB of RAM maximum because they do not have enough memory addresses to use 4GB of RAM since memory addresses are taken up by things like IRQs, drivers, etc. No matter what 32-bit operating system you install and no matter what hardware you have, you will only be able to use 3GB of RAM.
Vista 32 bit versions have a 4 gig limit now not 2 Gig.
People with 4 Gigs of RAM will not see it all however because the 4 Gig limit includes all installed memory such as video cards, so for example a 512 Mb card will be deducted from the 4 Gigs "allowance"
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