32bit server, virtualisation PAE memory question

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I got an old server here, its a Quad Xeon MP 2.7ghz and I have a stack of memory for it. Unfortunately this Xeon isn't 64bit.

At the moment its running Win2003 with MS Virtual Server 2005 R2, it has a couple of test server hosted on it, but nothing special.

I want to evaluate something better, like VMware but I'm curious if I can install 16GB of memory and access it using PAE so I can maybe have 4 hosts each with 4GB or memory?

I would ideally like to install Win2008 Hyper-V but I understand its only 64bit, is that correct?

I have quit a few of these old Quad Xeon servers, but I'm struggling to find a use for them...
 
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