I think the reason I thought I had 3 gigs is because 32 bit only reads up to 3.25 gigs. So, I guess I forgot I had 4 gigs.
Based off of what you told me and what I learned in school about memory, I am going to guess that 3.75 gb is for applications and the other .25 gb is for the system to use. That's just I guess, but it makes sense.
Thanks for your help, much appreciated. I am loving this 7 though.