so i would have to use a 64 bit version of windows to get the full use of the 4 gigs?
32 bit versions of Windows are limited to 4GB virtual address space which means that each application can only address that much including kernel memory. The physical address space is not limited thanks to PAE (however it is limited to 4GB for marketing reasons, server versions of Windows do not have this same limitation) but the hardware will still need to reserve a small amount. In your case it seems to be a little bit over a gigbyte which is unusually high for some reason. So yes, the simple solution is to just install the 64 bit version of Windows