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There are a couple reasons. At the time it was released, 4 GB was more RAM than most desktop computer had or would be expected to have in its lifecycle. Also, 32-bit operating system can only access more than 4 GB of RAM if they run in PAE mode. Not all drivers will run correctly with more than 4 GB of RAM, so Windows XP deliberately capped it to avoid problems.

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Q: Why was Windows XP only capable of accessing 4GB if RAM?
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