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Red Hat Enterprise Linux (v.3) for i386 will treat Opteron systems as AMD Athlon systems. The Athlon kernels do not have PAE enabled due to compatibility issues with older Athlon based systems. You may do one of the following to get your system to recognize all of the installed memory.
Reinstall the system using the x86_64 port of Red Hat Enterprise Linux (v.3)
Install the kernel-smp-.i686.rpm package and boot the system using that kernel. Use the hugemem kernel for systems with 16GB or more RAM. Either kernel will be able to utilize all of the installed memory. This should work regardless of the number of CPU's installed in the system, however there will likely be a small performance penalty as AMD specific optimizations are not present.