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I would take the 2 x 512 MB, because even if you do upgrade to 2 GB, you will need matched pairs to achieve a dual channel configuration. If you juat add another 1 GB stick to the one you have, you will only get single channel. But if you will be on a tight budget, then you could save some money by just adding another 1 GB stick.
BTW, it says you only have 896 MB of RAM because the Radeon X1100 uses 128 MB of the system RAM for video RAM.
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