Yes, yes it does run 1 GByte of RAM, even two.
If you're eyeing a system upgrade in the near future, go with 2x512 MByte DIMMs, and buy single-sided DDR400 stuff - so you can then reuse the RAM in e.g. a dual-channel socket-939 setup. If this RAM is going to stay with this board for quite a while, then go for a single 1-GByte DIMM. In the latter case, you might just as well go with simple DDR266 (PC2100) material. At least where I live, no-brand DDR266 1-GByte DIMMs are HALF as much as minor-brand DDR400.
Whatever you chose, run a thorough RAM test when it arrives.
www.memtest.org