I cant speak for Arc Hydro, but from a computing standpoint 4GB of RAM is pretty low for a modern system. Its likely that 1-1.5GB of that RAM is being taken up by just Windows 7 processes. Be glad you dont have Vista as it takes up almost 2gb of RAM just keeping itself going.
RAM is pretty cheap now a days and with 64b windows there is no upper limit on what your machine can use, so if you have the open slots on the motherboard its well worth your time to ask your IT dept. for more.