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Low SQL 2008 memory usage

Hi guys, I have a Windows 2008 Ent edition 64bit and SQL 2008 Ent 64 bit. Recently the performance is very sluggish. It has got 12gb of physical ram. I looked at the task manager. Memory usage is 97%. However when i look at the sqlservr.exe process, its only using 116,792K of ram. Why is the ram consume so little? This is the production server with high specs. I have a similar testing environment running on VM and it shows the correct amount of ram for sqlservr.exe process. Please advise.
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But i have set the Max memory in SQL manager that leaves 2GB for OS but i'm still seeing physical memory used is 96 to 97%
There are other processes runnign that will occupy physical memory in the low 2 GB adress space. SQL may have nothing to do with it. On the other DTSrun can occupy memory in the lower 2 GB range. Start Task manager - under processes make sure you check the box to allow to see precesses from all users then under view select columns add the memory commit size to the visible counters (you may have to expand your window to the right to see the newly added counter) this will further help you in tracking down what process is occupying your memory.
SQL data(mainly) and code cache will take most of the physical RAM from that box unless you specify that in SQL MEM config: http://support.microsoft.com/kb/321363

"[...]  the Task Manager and Performance Monitor may show that the physical memory available on the computer is steadily decreasing until the available memory is between 4 to 10 MB."