Vista has 2 limits. The application limit, and the OS limit.
Essentially Win32 applications (those designed for 'regular' Windows) can only address 2 Gig of RAM. The OS itself can address 4 Gig, but will usually only show 2 Gig as being installed. I have 4 Gig in my Mac Pro, but it shows up as 2.
Either way, unless you get the 64 bit version of Vista you're not really going to take full advantage of the available RAM over 2 Gig and even then not all apps will necessarily be able to use it.