Windows allocates those addresses first to the video ram, then to main ram.
Windows does NOT count video RAM against the main system RAM total, as it's only an arbitrary licensing limit and not a limit of the technology. Only in 32-bit windows will you run into that issue (Unless you've managed to construct the world's first system to have multi exabytes of memory, and hacked windows to remove licensing restrictions.)
...if you do the math IIRC 32bit = 128gb.
There are hacks I have read about that allow XP to address greater than 4gb, but that was way over my head.