Video RAM really has no line - it's a bit of a paper scam. The perfomance that you may be attributing to more video ram is actually a function of higher bandwidth. Bottom line, there are very few theoretical applications on a mid-range card (which this most definitely is) that will benefit from the additional video memory - those that actually need it know who they are...
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My x850XT (256MB) chokes when I have a lot of textures and complex trees, etc. Sure more/faster memory bandwidth would help. And the GPU RAM isn't the only thing that makes a GFX card faster. The intended use has a lot to do with how "good" the card is, too. There are also a lot more people complaining about the GMA950 in the MacBooks, too, but the intended usage of the 950 isn't heavy 3D apps.
I don't think Eidorian is saying that it's a bad card, but a 256MB base 15" with a 512MB high 15"/17" would be even better, especially for 3D/dual monitors (come on, each one could potentially take up half the Memory)--Games, sure I think you're right that more bandwidth/faster memory would make more of a difference than more memory - but with DX10 coming, who knows how big the texture files will be - UT3, here I come