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We have posted a script to fix the on flash devices only showing 512Mb of ram. The instructions and link are here http://pengpod.com/pengwiki/index.php?title=It_only_shows_512MB_of_ram_on_my_PengPod_with_Linux_on_internal_memory
You should end up seeing this after install
total used free shared buffers cached
Mem: 834772 131092 703680 0 10464 69028
-/+ buffers/cache: 51600 783172
Swap: 0 0 0
A few people have commented on the fact that it is not the full 512 or 1Gb. This is because the Allwinner chip reserves memory for the mali and cedar on board acceleration hardware. If you require all memory there is a recent community patch that will allow you to set this has a kernel command line option. If you are interested, you can read more about it here https://groups.google.com/forum/#!searchin/linux-sunxi/Add$20sunxi_*_mem_reserve$20kernel$20cmdline$20options/linux-sunxi/WXMXDfvOLGY/XgWyTYvdJawJ