Yes, the 2 Gb kit will give you two 1 Gb modules. They are a reliable dealer.
If your machine is a Core2Duo, the maximum is 3 Gb RAM, so you could also choose a 2 Gb module, the DMS part number is DM50 190
(re:selling the 512s -- you wouldn't get enough to make it worth your while. Keep 'em in case of warranty repair as posted earlier.)