I am running Windows XP 32bit, but I have always had 8GB of physical RAM installed on the MB, however, my XP only recognizes 3.25 GB at max, in other words, I have 4.75 of unused and unmanaged memory by the OS (assuming this knowledge of mine is correct?) I read up in another article that there are RAM DISK programs, that will enable you to allocate the unused portion of this physical RAM into a virtual drive under XP.
Sadly it doesn't work like that - the limit of 3.25 GB is the total amount of memory that Windows XP 32-bit can see, regardless of whether that memory is being used by Windows or by a RAM-disk driver. If you give 1GB to a ramdisk driver, then Windows will only have 2.25GB available.
If you want to make use of more of your physical RAM, you need to upgrade to a 64-bit OS
(Windows XP-64 will do, but newer versions of Windows are probably better)
now the question is. If i then disable all pagefile on my regular HDD and allocate the paging file entirely onto the RAMDISK (that uses the unused physical RAM), will i then gain a performance increase?
No. Never move the pagefile to a RAM disk. Doing so will always damage performance.