Computer recognizes 8GB of ram, but only uses 30% of it?

Mar 17, 2011
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Windows 7 Ultimate x64
Intel Q9550
ATI radeon 5770
P5QPL-AM ASUS motherboard
OCZ 8GB (2x 4GB) Platinum series RAM. pc2-6400 DDR2, 240 pin, non ecc, unbuffered

I have installed 8GB ram into my computer. Both my BIOS and system properties state I can use all 8GB of it. However- even when I put my computer under huge strain, I've never seen it go higher that 30-31%. It idles on about %20, so that means when I put strain on it, it only ever goes up by %10! I have not set a limit in msconfig either.
It's frustrating me why my computer isn't using all my ram. If anybody has any suggestions, let me know!

Here's an example: I open photoshop (64 bit) with a huge canvas (A0), and went crazy with a large brush. I've allowed PS to use %75 of my memory. PS lags heavily, yet my ram will not budge higher than 30-31%. Here is a screenshot of it. The ram is the steady blue line.

I assumed Photoshop would utilize the remaining RAM instead of slowing down dramatically. I upgraded my RAM so I could work with large resolutions without lag, however the lag is still heavy. Am I wrong to think Photoshop should be using the remaining RAM and stop lagging?
I would be extremely thankful if anybody could share any thoughts/information. Thanks :)

EDIT: Just re-phrasing, as I realized I might be a little unclear..
I set my memory usage in PS to use 75% of it, which is about 6GB. However, as I've said, Photoshop continues to lag with large canvases/brushes, and never uses more then approx. 2500 MB ram.
That's my main concern. I assign a potention 6GB for photoshop to use, yet as shown in the pic, it never goes over 2500mb. I believe if there was a way to let photoshop REALLY use 6GB, it would stop lagging and run smoothly ^^' is this correct or am i misguided?
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