• "If this is the case, will I not be able to use more than 3 GB on server 1 though I have 8GB RAM as it is SQL server 2000 standard edition?"

    No, you will not be able to use even 3GB as Standard Edition is limited to 2GB of memory under all conditions and setting any of the Windows options (/3GB or /PAE) will have no effect.

    Standard Edition is also limited to 4 CPUs (a dual core CPU counts as 2 CPUs).

    SQL = Scarcely Qualifies as a Language