Yes, like I said, there is only 2.3GB left for Windows applications after a restart, and as soon as this is taken, the laptop then starts to page swap and becomes almost unusable. It never eats into the 1.7GB of "hardware reserved memory".
Comparing the laptop with my desktop, both Windows 7 32bit and both 4GB RAM, the difference is that the desktop shows 500MB "hardware reserved" leaving 3.5GB for Windows applications whereas the laptop shows 1.7GB "hardware reserved" and leaves just 2.3GB free for Windows applications.
Therefore on my desktop I can run an extra copy of WoW or VirtualBox or Multisim etc - there is 1.2GB difference there.
I feel cheated by Acer because the laptop is adverised as "4GB RAM" but you can only use 2.5GB - it's like buying a 7 seater car and then find that 3 seats cannot ever be used by you.
So I am looking for a config setting. It must exist, the VGA takes 1.1GB of RAM, this must be a configuration item somewhere?