Kernel-PAE And CentOS 5 32bit

I have a dedicated box with following specs
Core2Quad 2.4ghz
2x500gb hdd
8gb ram

I installed 32bit centos5 in it ( because I use lxadmin ;lxadmin wont support 64bit)
Installed kernel-PAE successfully and rebooted the server. but the server still boots into the old kernel. I need the kernel-PAE to be booted, then only I can utilize full RAM. help me . below there is ssh logs
[root@t241 ~]# cat /proc/meminfo
MemTotal: 3357036 kB
MemFree: 3204984 kB
Buffers: 8148 kB
Cached: 109516 kB
SwapCached: 0 kB
Active: 33504 kB
Inactive: 103664 kB
HighTotal: 2477180 kB
HighFree: 2343972 kB
LowTotal: 879856 kB
LowFree: 861012 kB
SwapTotal: 6409892 kB
SwapFree: 6409892 kB
Dirty: 16 kB
Writeback: 0 kB
AnonPages: 19524 kB
Mapped: 7608 kB
Slab: 7732 kB
SReclaimable: 3964 kB
SUnreclaim: 3768 kB
PageTables: 400 kB
NFS_Unstable: 0 kB
Bounce: 0 kB
CommitLimit: 8088408 kB
Committed_AS: 45232 kB
VmallocTotal: 114680 kB
VmallocUsed: 3992 kB
VmallocChunk: 110560 kB
[root@t241 ~]# uname -rm
2.6.25.10 i686
[root@t241 ~]# cat /etc/grub.conf
default 1
timeout 7
color cyan/blue white/blue
title=CentOS (2.6.18-92.1.22.el5PAE)
root (hd0,1)
kernel /boot/vmlinuz-2.6.18-92.1.22.el5PAE root=/dev/sda2 pci=nommconf
initrd /boot/initrd-2.6.18-92.1.22.el5PAE.img
title=linux
root (hd0,1)
kernel /boot/vmlinuz root=/dev/sda2 pci=nommconf
[root@t241 ~]# rpm -qa | grep kernel
kernel-2.6.18-8.el5
kernel-PAE-2.6.18-92.1.22.el5
kernel-headers-2.6.18-8.el5
[root@t241 ~]#