PAE is a way for 32bit processors to escape the 4GB memory limit. It pushes that limit out to 64GB by paging memory just like the old 8bit processors used to do. In other words, it's a kludge. It is, however, a kludge that is supported by Linux, NetWare and higher end versions of Windows. And now FreeBSD too.
The PAE implementation in FreeBSD reads a little raw still. It has only just been made current and there are quite a few caveats. You can find a fairly comprehensive explanation over at FreeBSD.org. ยต