Welcome to MR, newmakkie. One hint would be to Search the forums or to have a look in the
Guides section of the site, where many commonly asked questions are answered. We have covered this topic many times. Under Guides: Hardware are articles about RAM.
More RAM doesn't do much if anything for you if you are using just one program. If your program and data memory usage remains below 2 GB, then the performance delta 2 GB to 4 GB will be minimal.
Where more RAM comes into play is when you are multitasking, or using programs and data sets that use a lot of RAM.
Photoshop for example can use up to 3 GB of RAM for itself. Digital audio, digital video, and virtualization (Parallels, VMWare) are other examples of types of programs that benefit from lots of RAM.
When you are running multiple programs at once, having more RAM means that you can switch between programs faster, because the OS doesn't have to immediately flush the previous program out of memory when you go to another one. It holds it in memory for as long as that memory isn't needed for something else. That's one reason why the "Free" memory in the graph is often low -- the Inactive memory is available for use, but is not currently needed, so it is caching the previous info for a quick switch back.