no, bios has no relation with this
the idea is to install 2.6.38.8-pclos3.pae.bfs and the system will have acces to all 4 gbs of ram instead of only 3.2
since you have a i3 and using the gpu on the cpu, you are using ram for the video card so you won't have all 4 gbs of ram, you will have around 3.9 gbs or less
the pcc numbers you showed seems to be the cache memory on your cpu, L1, L2 and L3 levels of cache, since you have a multiple core cpu this is normal values, i for example have a L1 with 128 kbs and a L2 with 128 kbs more, as you see, different worlds, really old, limited and slow hardware against a really nice new generation of cpu
sometimes pcc is wrong, mine reports that i have 8704 mbs of ram... i have 1280 only
the channels in my sustem are calle A0 and A1, one with 8192 and the other with 512, none of these values are right, one has 1024 and the other 256mbs
the command free in console is alot more precise
as said before, keep 2 or 3 kernels, boot with the new pae.bfs to see how it works, remember that each new kernel you install has to check hardware and add modules and this can take a couple of minutes, please be patient
after that, try again the free command