It's actually over 3 but it applies to all memory on the system.
Indeed; the limit is exactly 4GB of all memory on all devices in total, i.e. [(2^32) - 1] bytes (bits?).
System RAM minus graphics ram (minus hard drive cache? minus CD drive/sound card memory?) minus whatever else might possibly have some sort of memory address that the CPU could access directly = final value in windows.
So if you buy a 1GB graphics card for 32bit windows, with a total of 4GB, you will likely see a little under 3 gig total.
System manufacturers like to sell you machines with 3GB because they're using 512MB graphics cards or less, which won't intrude on that number. I can only imagine the number of 4GB machines returned to vendor because "only 3.2GB of memory is working..."
Oh well, maybe the OEM vendors will soon catch on that Win7 x64 is actually really good and worth using