You are correct in that XP 32-bit can only "see/use" up to 4GB of RAM. The system properties will show anywhere from 3.25GB to 3.75GB depending on the number of PCI cards and the amount of RAM on the video card (if it's a dedicated game server I would hope that you're just using some low-end card).
To see/use all 8GB you'd have to use one of the following:
Windows XP Professional x64
Windows 2000 Advanced Server with PAE enabled
Windows 2000 Datacenter Server with PAE enabled
Windows Server 2003, Enterprise Edition with PAE enabled
Windows Server 2003, Datacenter Edition with PAE enabled
Windows Server 2003, Standard x64 Edition
Windows Server 2003, Enterprise x64 Edition
Windows Server 2003, Datacenter x64 Edition
Windows Server 2003 R2, Enterprise Edition with PAE enabled
Windows Server 2003 R2, Datacenter Edition with PAE enabled
Windows Server 2003 R2, Standard x64 Edition
Windows Server 2003 R2, Enterprise x64 Edition
Windows Server 2003 R2, Datacenter x64 Edition
The Service Pack level doesn't matter (although you should always use the latest and install all hotfixes). See
this page for information on Page Address Extensions (PAE). It's basically a band-aid fix for 32-bit operating systems. To
effectively use more than 4GB you need to make sure to go with one of the x64 versions.
QUOTE (puntoMX @ Nov 8 2007, 01:45 AM)

Dual Xeon CPUs is a bit overdone I would say, especially when it’s a dedicated server.
Not true if you're hosting multiple games at the same time, especially with some of the newer games. As I understand it,
Crysis can be pretty intense on the server side. Besides, I've said it before and I'll say it again, I would much rather have more than enough power (extra CPU cycles in reserve) than not have enough to do the task.