The performance tab says that only 1.5 is in use
Since Vista and 7 do not have a "performance tab" I think we can discount those two as your OS;
on the other hand, XP doesn't have a "performance" tab, that I can find; the closest is the dialog you get when you open System properties, switch to the "Advanced" tab, and click the "performance" button, where it tells you the total paging file size for all drives; For windows XP, the maximum "default" size is 1.5 times the amount of installed RAM; so if the system had 1GB of memory when Windows was initially installed, then you would still have the virtual memory set to 1.5GB.
IF you could explain exactly where this "performance" tab is, that might help; the last consumer version of windows to have a "Performance" tab was windows 9x, and I'd be surprised if that would boot with 8GB of memory, and it certainly wouldn't recognize all of it.