Recently, a group of programmers have released a kernel patch for Windows 7 to allow the usage of more than 4 GB of RAM under Windows 7. Click here to download the patch, or view more information about it (warning, some side-bar advertisements are NSFW). The patch basically modifies the Windows 7 Kernel to be more like the Windows Server 2003 Datacenter Edition, which is compatible with up to 8 GB of RAM under 32-bit mode.
The patch allows you to extend the PAE well into 8 GB of RAM under Windows 7 32-bit. For more information about why Microsoft implemented this technical limitation, see Licensed Memory in 32-Bit Windows Vista (requires JavaScript to be allowed from www.geoffchappell.com).
As mentioned above, note that individual processes will still be limited to 4 GB even if the system can access more... Although if you had 8 GB of RAM, then at least you'd still have another 4 GB for other processes ;)
For those interested in the technical aspects, this happens because of memory-mapped input/output (MMIO for short). This allows a CPU to access both peripherals and RAM through the address bus itself. Usually this is done though the higher-order memory addresses to avoid lower-order address conflicts. However, this gave rise to the commonly known 3 GB Memory Barrier in all consumer variants of 32-bit Windows operating systems.