BIOS recognized 4096 MB of installed RAM, with 33xx available for system use
This shows that it's a Windows error (because the BIOS recognizes the correct amount.
BTW - nice quote archie123! Do you have the link to it? I haven't seen that explanation before.
There are issues noted about the web where it seems that there's an error in the display of these numbers. I personally believe that it's an unresolved issue between the latest version of WDDM and the change that changed the display from Available memory to Installed memory (Vista SP1)
To check this out, please open up Task Manager and go to the Performance tab. Let us know the numbers in each of the categories there.
Also, did you get the system specs from "systeminfo"? If not, please open a Command Prompt and type "systeminfo" (without the quotes) and press Enter - then compare the numbers in the two reports (this isn't essential, it's more of a curiosity).
If you find the correct numbers in the Performance tab of Task Manager, then the advice on the web has been to ignore the incorrect info.