Or upgrade to a 64bit operating system? Also is what you are telling me that having more than 3GB of ram with a 32 bit opperating system is a waste? How about with a 64 bit opperating system, would there be any point in going over 4gb of ram?
Yes, upgrading from a 32-bit windows-version to a 64-bit windows-version will allow process to use 4GB in stead of 3GB max.
Note, if you decide to upgrade your version of windows, go to Windows 7 64-bit of course. There is no point in wasting money on 64-bit Vista or XP. Unless you already have 64-bit Vista or XP.
When you run a 32-bit OS, then Windows can use only 3.5 GB of ram. A weird number, but that's what it is. I believe it has to do with the fact that Windows reserves a bunch of addresses for special purposes. (To communicate with devices over its busses. Those memory locations seem as if they are regular ram, but in fact there is not ram, but special registers, buffers and stuff on the devices).
Any process on a 32-bit OS can use a maximum of 2GB of memory. And 3GB of memory with the LAA-feature enabled.
But your machine is not just one process. There is the OS itself that requires memory. And you might have other processes running (even semi-hidden process, like a Logitech process that manages your mouse, etc).
Therefor having the full 3.5GB of RAM does have some small benefits over having only 3GB.
As you know, RAM is usually sold in sticks of 2x1GB or 2x2GB or 1x2GB or 1x4GB.
So the choice is actually 2GB or 4GB of ram for a 32-bit OS. I would recommend 4GB, because ram is so cheap.
When I built my PC 4 years ago, I used 32-bit Windows XP. I decided to put in 4GB of RAM. That was a good cost-effective decision.
2GB would not have been enough, with the games I was playing. 8GB would have been a waste.
So how does it work with 64-bit OSes ?
The main factor is, what application are you using ? And is this application a 32-bit applciation or 64-bit application ?
Most applications, and most games, are still 32-bit only today.
That means such a 32-bit application can allocate at most 4GB of RAM. Never more.
So you should have at least 4GB to make sure all your games and application will run smooth.
But does it make sense to have more than 4GB today ?
Yes, I think it does. For 2 reasons.
1) RAM is dirt cheap. 40-50 euros/dollars for 8 GB of DDR3. If you decide to buy only 4GB, you might save 10-25 euros/dollars. Not worth it. Go with 8GB of DDR3 in your new PCs.
2) With LAA-support, games can use 4GB of RAM. And it looks like more and more games are getting close to 4GB. Especially with high-res textures. Now as we discussed above, the OS itself also uses RAM. More and more. Win7 uses like 0.5-1GB of RAM. (It's ridiculous). And you might have your browser open/iconified when playing a game. That's another 0.5GB. If you want to prevent swapping, you want more than 4GB ram in your machine. Therefor I recommend to put 8GB of ram in any new machine.
Would it help to put 16GB of ram in your machine ? No, not imho. Only when you use applications that 1) are 64-bit, and 2) require a lot of memory, only then it makes sense to have more than 8GB. If you do video-editing. Or heavy scientific computations. But for most users, and for all gamers, 8GB is more than enough.
Game developers will only start developing games that require more than 4 (or 8) GB of memory, when they know that the majority of PCs out in the real world will have 8GB+ of ram. And that point is still far away. If you build a PC now, with 8GB of ram, you will be save for the next 3-4 years, imho. And even the progress would speed up, and you need more than 8GB of ram soon, you can always add 2 more sticks of ram to go to 16GB.
FYI, I will buy a new CPU + motherboard + ram next week. (When the new Ivy Bridge cpus are for sale).
I will buy 8 GB of DDR3 ram.