the video is on-board, thus, it shares a portion of the system memory for use with video. the sticks they used are about as cheap as they get. (likely Chinese rejects being resold) the system normally runs 640x480. it doesn't use much of the RAM.
when you change resolutions, 800x600 and up, you use more RAM and it gets into the sketchy area. sometimes you can get it to work, other times it does the off the screen thing.