Quote - It's not a memory bug, but a limitation of the hardware. The current 32-bit CPUs can only address a maximum of 2 GB memory. When the computer starts up, at least 512MB of memory is eaten up by the operating system. That leaves about 1.5GB RAM for program code and data.

That's 2 GB per application and not for all programs. Processor architecture and Windows improved a bit since the stone age ;-)