Not a good sign. Maybe a confusion on the memory controller on whether to recognise and allocate 4GB or just 3.3GB.
Yeah, I'd say it's either that or maybe the memory itself is just bad. I'd try the memtest with just one of the two sticks installed - if it works, then swap them and try the other. If both work as a single stick, then I think we know that the Macbook really does have trouble with a full 4 GB. If either of them doesn't work that way, then it's definitely a bad stick.