Yea - sounds like you got quite a lemon of a RAM chip on that one. Hopefully replacing that chip for a better one will fix the problem for you. And yes, you're correct about the physical addressing of memory based on which RAM chip is located where (as you already saw from memtest).
I run my machine on 768MB of RAM (had a 256MB stick do nasty things to my computer - the RAM corruption was so bad that Windows told me that my BIOS was not ACPI compatible, removed the RAM stick and suddenly "my BIOS was cured."). 640 should be plenty for your purposes, especially since you won't be doing a lot of heavy gaming on a GF2 and that's probably one of the biggest RAM hogs on a system.
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Eat antimatter, Posleen-boy!
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