Your manual will tell you. Assuming you don't have a paper one, there is/should be one on your hard drive. You can also go to Dell's website and find the info there.
They might only say that because that's the max the computer was sold with.
The 945 chipset can handle 2GB sticks and 4GB of RAM. Unfortunately, Windows won't be able to utilize all 4GB because the upper range for memory addressing is reserved for system components and you cannot change those last few hundred megabytes of RAM to a different address on a laptop (I've seen a few retail motherboards that get around the 4GB problem by allowing this).
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