When I mean 3.5GB, sometimes the OS will use the rest for the video card. Even if the card has a GPU on it, altho for most of them it shouldn't do this. In windows 7 system information. It may read your RAM has "4.00GB (3.5GB useable) Etc.
For the most part 4GB is the max for any 32Bit OS (excluding Windows XP, Vista and 7 starter editions which will use 512MB,1GB or 2GB MAX). But most often it will read around 3GB or so. They tend to do this.
Minds you that if you get a 64bit OS and have 4GB+ RAM. This won't make 32bit apps any better. FPS Creator for example will always use 2GB no matter what. Other 32 bit apps will be stuck at 4GB even if you have windows 64 bit.
My suggestion would be to get a 2GB stick. If it does read over 3GB you will know.
Good Luck...
Computer Specs: Intel Core 2 Duo E7400 2.80GHz @ 1066Mhz FSB 3MB Cache, Dual Channel 8192MB DDR2 PC6400 800MHz RAM, XFX Nvidia Geforce 9800 GTX+ 512MB, XFX 780i SLI Motherboard