32 bit Windows can theoretically address up to 4 GB BUT hardware addressing limitations mean that the total available to the OS is somewhere between 3.0 and 3.5 GB. On a PC, Windows itself will report 3 GB available (the space above 3 GB is used for drivers and resources), and the most available to a single application is 2 GB.
Under Bootcamp, 32 bit Windows is restricted to 2 GB RAM regardless how much extra is in the Mac. This is an issue with the Mac's firmware/EFI. Scattered people have reported seeing 3 GB on MacBook Pros, but it is unclear whether this is an artifact of the Windows utility used to report the RAM size or not. (The addressable RAM is not affected by the /3GB and /PAE switches in Windows, as meny have posted without trying it -- these are for allocation of memory to applications within Windows.)