That PC is 2005 vintage. It may be hardware limited to 4 GB despite the 64 bit OS.
If it's barely usable there is something else going wrong, windows 7 will run on 2.75GB fairly happily for her uses (Obviously not ideal though, still worth trying to free some of that reserved area!)
Not really sure what the best route to go would be on working out why it's not running well though
The maximum installable RAM is 4GB. The BIOS can see all 4GB (1GB in each slot)... It still doesn't explain why Windows can only use 2.75GB out of the 4GB though. The rest is wasted