With 8GB memory, /PAE, /3GB and AWE all needs to be enabled. On a SQL 2K standard edition, i dont think you can make the sql use more than 2GB with /3GB, /PAE or AWE. its a limitation of the edition unable to access larger memory itself. have a read at the article below. although the OS is windows 2K, but the sql memory limitation still applies. Although i've enabled 3GB on a 4GB server, my sql standard edition was still only using 1.7GB max.
back to the memory management of sql2k vs sql2005. what i found out is that in sql2k, if you fix the memory allocation, you can gradually see sql is taking up that amount of memory and it stays there. but in sql2005, it dynamically allocating itself memory even after you've fixed the sql memory. in a scenario where the server is having memory contention between OS and SQL, SQL2005 will release its memory back to the OS whereas sql2k wont. that's what it means by dynamic memory mgmt in sql2005.
When some say memory >4GB in 32-bit OS are never used, tell me i'm dreaming. i've got a 8GB memory, 4-dual core CPU configured with PAE, 3GB and AWE. When i fixed the memory usage of SQL at 6.5GB, i definitely can see my sql2k (via perfmon > SQLServer:MemoryManager > Total Server Memory (KB)) is allocating itself the physical memory until my fixed memory size 6.5GB. This is how i track all my sql servers memory usage. how's its using the memory whether its as efficient as 64-bit, probably not. but i'm sure sql2k would benefit from larger memory and its not "wasted".
Microsoft Certified Master: SQL Server 2008