I'm not a linux expert ( or a user anymore ) though I've at-least 3 years of experience with it and once I've tried a live disc of a x86 edition of linpus ( later installed fedora and opensuse but the resut was same anyway ) linux and it was unable to recognize all 4GB mem - so by default linux x86 editions don't support ( let you use ) all 4GB mem.
Now coming to the PAE part - that will configure the kernel to address upto 16GB ram ( like windows server editions ) but that's complicated process anyway - either you have to get a PAE version of the linux ( distro ) kernel you are using or you will have to recompile the kernel by yourself - which not many users can able to do.
So the best way is to get a 64 bit version of your favorite linux distro and that will let you use all the ram