Hi Oktober!
4Gig on a 32bit system, well, you know that you won't benefit much from it, maybe even less than with 3 gig, if you don't have an nForce board, but considering how cheap memory is at the moment, I understand why people are tempted.
You have to set water to "2", because that is the optimized water for ATI/AMD. Other than that, you should try highest settings:
(AFAIK VideoSetupId differs after running il2setup.exe, as I have an nVidia-GFX-card.)
TexQual=3
TexMipFilter=3
TexCompress=0
TexFlags.UseDither=1
TexFlags.UseAlpha=0
TexFlags.UseIndex=0
TexFlags.PolygonStipple=1
TexFlags.UseClampedSprites=0
TexFlags.DrawLandByTriangles=1
TexFlags.UseVertexArrays=1
TexFlags.DisableAPIExtensions=0
TexFlags.ARBMultitextureExt=1
TexFlags.TexEnvCombineExt=1
TexFlags.SecondaryColorExt=1
TexFlags.VertexArrayExt=1
TexFlags.ClipHintExt=0
TexFlags.UsePaletteExt=0
TexFlags.TexAnisotropicExt=1
TexFlags.TexCompressARBExt=1
TexFlags.TexEnvCombine4NV=1
TexFlags.TexEnvCombineDot3=1
TexFlags.DepthClampNV=1
TexFlags.SeparateSpecular=1
TexFlags.TextureShaderNV=1
HardwareShaders=1
Shadows=2
Specular=2
SpecularLight=2
DiffuseLight=2
DynamicalLights=1
MeshDetail=2
VisibilityDistance=3
Sky=2
Forest=2
LandShading=3
LandDetails=2
LandGeom=2
TexLarge=1
TexLandQual=3
TexLandLarge=1
VideoSetupId=17
ForceShaders1x=0
Water=1
Effects=1
3DBridges=1
TypeClouds=1
PolygonOffsetFactor=-0.15
PolygonOffsetUnits=-3.0
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