but feel free to continue bickering over if this thread is finished or not as well.
Not really the thread, merely the 'subject' of 2GB vs 1GB, which was what Tweak chimed in to supposedly "put to rest"
I did miss a few turning points in your thread, which I assumed was over:
What is the maximum amount of RAM 32bit windows can address?" (I see 3.5gb, but I don't know if it's really using that much)
Whatever you see in your "My Computer -> Properties" is what is used, because Windows won't report whatever it couldn't address in the first place, as it is effectively invisible. The rest of the RAM that is not used is either unaddressable because VRAM takes a part of the address as well, or (in your case) is used as shared video memory to integrated graphics. Around .25GB is reserved all the time and used for all other things that Windows needs to address as well aside from RAM and VRAM.
In my case, for example, I only see 3.25GB out of 4GB in Windows XP SP3. That's because of the ~.25GB reserved, then .5GB (512MB, actually) VRAM of my HD 4770. So Windows only has enough addresses for 3.25GB, and thus only "sees" and uses 3.25GB, 0.75GB of my RAM being effectively useless (unlike in your case where part of the "unaddressed" RAM is actually being used as VRAM)
Alas, I have not encountered any Hypertransport Sync Flood Error myself, and I've had 3 MSI motherboards in the past 4 years, including a netbook. If it happened when you added RAM, the RAM is highly suspect, unless you can follow the routine suggestions of increasing DRAM voltage, but that is unlikely in a netbook.
EDIT:
By the way, have you had success using Memtest HCI? If it passes that, bad RAM (or even bad RAM + any software like Rightmark that activate in Windows) can be ruled out.