Does this mean one of my RAM sticks is borked or is it a [yet again shitty] Windows quirk?
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The RAM issue is most likely something that all 32bit OS’s will suffer from where they can only address 4Gb in total, Quick guess that the laptop has 1Gb on a Graphics card so it can only use 3 of the main RAM.
Is the chipset 64bit? If it is installing Win 7 64 will fix that issue, if not then you are at your limit.
Who makes the laptop? Sounds like you need a driver for the Webcam running under Win 7. Normally go to the manufacturers site and find the support/dl page enter your laptop model etc. and get the right drivers – normally an entire set for a laptop running under win 7.
Fairly straight forward.