Windows 7: Gaming With Only 2GB DDR3 Memory, XP or 7

I currently am running Windows 7 Ultimate x64 with what used to be 4GB of memory, but my 2GB stick recently went bad. Now I am left with only 2. I game on this computer through Steam, and i was wondering, should I revert back to XP due to the less memory consumption or just move to x32 Windows 7. I'm not entirely sure if I benefit from DX10/11, or do I? Any recommendations, suggestions would be great. Also my computer outputs a "beep beep" through the line out every time my desktop wallpaper changes and I'm wondering, why? Thx

Specs
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AMD Phenom II X4 955 Deneb 3.2GHz
ECS IC780M-A2 Motherboard
2 Micron DDR3 1GB Memory Modules
Sapphire ATI Radeon HD 5570 1GB Video Card, Dual monitor setup, a 1920x1080 and a 1280x1024
3 Hard Disks
OCZ 600 Watt Modular PSU

From my point of view i would partition your hard drive install windows xp and use it until you get more memory. The 2gb is kind of low in my opinion. Windows 7 requires at least 1gb and you have 2. Its really up to you though. Hope this helps

Pffft please 2GB it perfectly fine to run Windows and play games. I've been doing it for years. The only thing you may have to do is lower the quality of the textures or endure extended loading times. But that is hardly an issue.

I just tested it with skyrim, everything is off or on low, exept for the textures (haha) and the ram usage is at 95 to 98 % in Whiterun.

Any thoughts on the "beep beep" issue?

RAM is dirt cheap right now, so why not get a new kit? 4 GB kits are very cheap, and since it is DDR3, it would last you through another upgrade.

srry for the constant replies, but should go with x32 Windows 7 then?

Problem is i don't have a cent, if i had the money i would completely rebuild my system with all new hardware. I need to get a job

A memory kit is $22 at Newegg. That being said, if your 2 GB stick went bad, have you tried getting it RMA'd?

Well all the ram i'm using now i got from my school. I went to a vocational school for computer networking for the last 2 years of high school, and they were clearing out a bunch of stuff and moving the tech center, so i got a few things. I'm just gonna save up and get new MB memory and Video card. How about one of those GeForce 690's (bust out a thousand)