Well eventually the faqs sort of point to this in MS knowledge base, ie known problem in 98se and earlier. 2 GB can be physically addressed, but more than 512 MB and you need to diddle stuff.
WORKAROUND
To work around this problem, use one of the following methods:
* Use the MaxFileCache setting in the System.ini file to reduce the maximum amount of memory that Vcache uses to 512 megabytes (524,288 KB) or less. For additional information about how to use the MaxFileCache setting, click the article number below to view the article in the Microsoft Knowledge Base:
* Q108079 32-Bit File Access Maximum Cache Size Use the System Configuration utility to limit the amount of memory that Windows uses to 512 megabytes (MB) or less. For additional information about how to use the System Configuration utility, click the article number below to view the article in the Microsoft Knowledge Base:
* Q181966 System Configuration Utility Advanced Troubleshooting Settings Reduce the amount of memory that is installed in your computer to 512 MB or less.