There are a couple of potential reasons.
First of all, are you running 32 or 64 bit? If it's 32 bit then you're stuck as a certain amount of RAM is sequestered by W7 for hardware processes.
If you're running 64 bit then you would be able to change the amount that Windows has sequestered away...
You can find out how much RAM is reserved for hardware by opening the resource monitor (type "resource monitor" into the search box on the start menu - thats probably easiest as Microsoft tend to hide it away) click on the memory tab and you should see something like this...
That will be a start...