The 32bit OS can adress only 3.5GB system RAM. Video cards use some of the memory adresses from the top down to cache texture and other things. Back in the old 32 bit days a 512MB GPU was huge, so a 4GB limit was normal.Today 2-4 GB GPU RAM is common. If your system supports it just go to 5GB or 6GB sytem RAM. The OS won't see it but the GPU will. You can add the GPU and see if system RAM drops down to 2GB or so, then you will know what to do. Some older systems only supported 4GB RAM total. Then a 1GB GPU RAM limit makes sense. So it actually has more to do with MB RAM capacity than the 32bit OS. The 4GB RAM limit for 32 bit OSis old information from back when RAM was very expensive.
I would also suggest a small SSD for 32 bit...