Comment 6 for bug 1039701

Hm, looks like lshw is giving us wrong information:
<node id="memory" claimed="true" class="memory" handle="DMI:000F">
<description>System Memory</description>
<physid>f</physid>
<slot>System board or motherboard</slot>
<size units="bytes">2147483648</size>
<capacity units="bytes">3221225472</capacity>

That tells us you have 2GiB (2147483648)

Further down, it says you have bank0 with 512Mb and bank1 with 1.5Gb:
<node id="bank:0" claimed="true" class="memory" handle="DMI:0010">
<description>SODIMM DDR Synchronous</description>
<physid>0</physid>
<slot>M1</slot>
<size units="bytes">536870912</size>
<width units="bits">32</width>
</node>
<node id="bank:1" claimed="true" class="memory" handle="DMI:0011">
<description>SODIMM DDR Synchronous</description>
<physid>1</physid>
<slot>M2</slot>
<size units="bytes">1610612736</size>
<width units="bits">32</width>
</node>

Can you run it without -xml and check the memory information it reports about your system? It's more human readable that way.