Windows 7 32 driver is not compatible with PAE.
It's not only my issue see here:
More on topic :
When I booted into pae patched kernel there are BSOD's my laptop is acer v3 771G and here are .dmp files:
caused by intel hd graphics driver for win7
When I install xp driver on windows 7 32 bit and enable pae everything works except for aero no BSOD's .
Here are screenshoots to prove you that this PAE patch gave me 1.5 GB of useable RAM with windows xp driver.
let's hope it can convience developers to look into this BUG.