That's wierd. I've seen BIOS picking just one of two sticks. But that would be 256MB, not 128MB. Soumds more like L1 cache in a CPU
I'd run Memtest86 and see what it shows. It doesn't use Windows so it would be an independant confirmation.
I'd also zip off an email to the mobo manufacturer's tech support.
Fern
EDIT: Yeah, good point. Sounds like gfx card vid ram