Could there be a problem with my memory?

I just built a computer with a MSI K8T NEO2-F motherboard and with a 1gb stick of Corsiar 3200 memory. When I go to start-programs-accessories-system tools-system information it reports 1024mb of ram but only about 200-250mb of available physical memory. Then when i got to control panel and system it says on the general tab that there is only 512mb of ram available. Could there be a problem with the ram or is it something else? Basically the only thing running is system tools that came with the computer and excel.

Try updating your BIOS. Things like that are generally a BIOS issue and are fixed by the latest version avalable. If you are using a 3200+ or 3000+ this holds especially true since their full CPU support has only come recentally with a BIOS update

I built this computer for a friend who lives about 40mins from me. What is the easiest way to update the bios for this board? Thanks for your time