You don't HAVE to use a 64bit OS to run a system with 4gb of RAM, but it is beneficial. Any 32bit OS can only address up to 4gb of memory, and so this total will comprise RAM, GRAM, pagefile + any other memory (for example, on a sound card - although this won't be a significant amount). So in reality, you'll probably see around 3.25gb(ish) with your current hardware. I think running dual channel RAM may excarbate the problem (i.e. you will see even less sytem RAM), but I'm not sure of the credibility of this statement so don't quote me
A 64bit OS can address up to 128gb (I think). For your system, a 64bit OS will mean that it can address all of your RAM, + GRAM + pagefile etc without any compromise
32 Bit software will run fine on a 64bit operating system, I have been using 64bit since last August and only had one problem which was Itunes,
which was fixed shortly afterwards.
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