It is the same reason that XP 32 can't see 4 GB. A 32 bit OS can only see 4 GB total. Off the top of this total comes hardware memory. What is left is what you will see in a 32 bit operating system. If you want to see all 4 GB, you need to use the 64 bit version since it can use the 4GB and place the hardware at a higher memory setting than 4 GB.