RAM not working correctly

I have 4GB of DDR2 800MHz RAM, using 64-bit Windows 7.

When I view my computer properties in W7, it says I have 4GB of RAM. However, it dosen't seem to be using all 4 GB for some reason.

I've noticed that playing most games takes the vast majority of my RAM, which seems odd. So, I did a test: Minecraft is game that tells you exactly how much RAM it's currently using. While playing Minecraft, it uses about 550-660MB of RAM constantly. With MC open, my memory usage is about 80%. When I close it, it goes to about 45%.

This suggests that I only really have about 1.6GB of RAM (80 - 45 = 35% usage. 100/ 35 = 2.8. 2.8 * 600 = 1680MB), despite W7 clearly claiming that I have 4GB.

This really sucks! While playing most games that I like, RAM usage hits 100% most of the time, and really slows down performance. What's going on here? Why is my computer only using 1.6 of my 4GB of RAM?
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More about working correctly
  1. well, that's kinda easy to explain :)

    your graphic card eats some ram as it cache. so, if you have a GC with 2GB memory it will eat additional 2GB from your RAM... the rest are system resources and random crap your system needs for running... :)
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