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XP can only use 2Gb no matter how much you install.
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Not true. Basically the limit is 3.2GB for XP 32 bit. I gave 3GB and I have many programs set up to use more than 2GB. I use XP Game launcher to unload unnecessary background programs and services and free up RAM prior to playing certain games. If you want to utilize more than 3GB on XP, you need the 64bit version.
XP with services will use up almost 1/3 of the ram if you have 3GB.