Taking a look at the min reqs you will require a Radeon HD 6850 graphics card with a Core i3-540 3.06GHz or APU A6-3620 Quad Core processor to reach the minimum The Elder Scrolls Online: Morrowind
Remember, 32 bit ESO.exe runs in user mode space, which is limited to 2GB on a 32 bit OS, (and 4GB on a 64bit OS, ONLY if the IMAGE_FILE_LARGE_ADDRESS_AWARE was set during the compile process). I have no idea if ESO was compiled with the IMAGE_FILE_LARGE_ADDRESS_AWARE set, ZENI would have to chime in on that. Here's a quick EXPLANATION on that.
This is the hard limit and can never be exceeded, no matter how much RAM your machine has, 4GB is the absolute maximum ESO can ever address or use. However, there is a problem inherent to this design. Remember a few months ago when they made ultra settings require a 2GB graphics card? They literally shot themselves in the foot and I will
I personally have set Votan's to the following settings - minimum FPS is 55, minimum draw distance is 20, and my graphics settings are 'ultra' at 4k. However every system is different, and you will probably find that other settings work better for you. Please let us know the outcome.

4.1) In ESO video settings, make sure your water reflections are set to LOW (setting them to when the reflections are set to medium and above they use your CPU to render which causes SIGNIFICANT performance hit in ALL cases, not just when you are near water. 5) In UserSettings.ini file make sure to tweak the following settings:

Votan's Adaptive (Video-)Settings. This add-on adjusts the view- and particle distance to the current graphic load and context (normal, combat, UI hidden) to stabilize the framerate. If the view distance drops and drops, additional effects get disabled: Distorsion, god rays and antialiasing. In this order. . 41 129 166 202 296 197 145 32 161

eso system requirements ultra settings