Yep, this is indeed correct. If you have 4GB or more of RAM, then you will need to be using a fully functional 64-bit system to be able to address it all. If you are only using a 32-bit system, then the system will only be able to address around 3GB give or take.
Absolutely not. Whilst a 32-bit system may not be able to address 4GB of RAM, by having 4GB installed, you're still gaining an extra 1GB or so which can only increase performance.
I always wondered about it, as I saw it as the system is altering what can and can't be used, therefore there would be a performance hit. I have seen something you can do to enable all 4GB, but again wondered if it would slow the system.
You're probably referring to something called phisical address extension which doesn't apply to consumer based operating system like Windows XP, Windows Vista and Windows 7.
If you want to be able to use 4GB or more of RAM, then moving to a 64-bit operating system is your only option. If you're worried about compatibility then to put it simply, don't be. Unless you're running some obscure hardware, you won't have any problems. There really is no reason not to migrate over to 64-bit today.
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