You really should look at upgrading to 64-bit windows.
32-bit has a RAM max of 4GB - this includes system RAM AND graphics RAM. (and any mobo/sound card as well, but minimal so meh). http://support.microsoft.com/kb/929605
Meaning you're using at least 5GB worth on an OS that can't utilise it properly.
I remember one of my previous rigs having 2.5GB of system ram available because the graphics/sound used up the rest.

Nearly everything that works on 32-bit windows will work on 64-bit windows. The only thing I've come across that doesn't , is unsigned device drivers won't install on 64-bit windows (security/licensing), and that was only once in the last 5ish years of using 64-bit windows.