You don't get full use of your 4 GB of memory under a 32-bit operating system because while the maximum address space they can access is 2^32 = 4,294,967,296 byes or 4,096 MB (4 GB), hardware such as your graphics card with its 512 MB or 1,024 MB of RAM need to be mapped into that space resulting in less free RAM. Other hardware also needs to use this space. This is why no 32-bit operating system has access to the 4 GB.
If you're thinking of upgrading to 4GB or more of memory then you really need to be installing a 64-bit operating system to use it all. This will allow to use the full amount of memory you have installed and you can still fit graphics cards with lots of onboard memory too.