I'm actually curious, seeing how the flag got changed to more than 2 gigs is it hard set at 4 gigs or will it use whatever it needs from my 8 gigs? And if it is locked can I allocate more ram similar to how I can on other programs?
Since Skyrim is a 32 bit program, it can only address 4 GB of virtual memory. For smooth operation it is best if all this memory can be mapped to 4GB of physical memory (the actual memory in the computer). (That is, if Skyrim would actually try to allocate 4GB).
Should it do so, you might benefit from having some extra physical memory, to allow the virtual memory of other processes that run in the background to be mapped into physical memory as well.
(Bit oversimplified this, but....) If the total amount of virtual memory allocated by ALL processes running on the computer is larger than the physical memory available, windows will move virtual memory from physical memory to hard disk. It will then move/allocate new virtual memory in the freed physical memory. Then, if the process whose memory was swapped to disk, needs the memory again, windows will move some other memory to disk and reload the process' memory from disk to physical memory. This is called swapping and this is quite expensive performance wise.
So, with LAA enabled on a 64 bit system, it seems to me that having >4GB physical memory makes sense.