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Ok I am building a PC and I was going to add 8 gigs of RAM to it. Well my dad told me that XP can only utilize 2 gigs of the ram. It can use all 8 but not at the same time. Is this true?

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Not quite.

32bit operating systems can only utilize 4GB *minus* the memory on the video card.
This is because 2^32 = 4GB, ie maximum addressable space.
Both XP and Vista come in 32bit and 64bit versions, and your CPU must be 64bit to use a 64bit OS obviously.

FYI, 8GB is seriously overkill for almost anything but a server.

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