Completely wrong
"The original releases of Windows XP and Windows XP SP1 used PAE mode to allow RAM to extend beyond the 4 GB address limit. However, it led to compatibility problems with 3rd party drivers which led Microsoft to remove this capability in Windows XP Service Pack 2. Windows XP SP2 and later, by default, on processors with the no-execute (NX) or execute-disable (XD) feature, runs in PAE mode in order to allow NX.[14] The no execute (NX, or XD for execution disable) bit resides in bit 63 of the page table entry and, without PAE, page table entries on 32-bit systems have only 32 bits; therefore PAE mode is required in order to exploit the NX feature. However, "client" versions of 32-bit Windows (Windows XP SP2 and later, Windows Vista, Windows 7) limit physical address space to the first 4 GB for driver compatibility via the licensing limitation mechanism, even though these versions do run in PAE mode if NX support is enabled.
Windows 8 will only run on processors which support PAE, in addition to NX and SSE2."
- http://en.wikipedia.org/wiki/Physical_Address_Extension#Micr...