Does your laptop supports 2 GB sticks?
The 929MB is probably because you have an integrated graphics card, so it's using part of the memory. So it's like 1024MB -minus what the integrated card needs (assuming it sees only 1 GB Ram from the start).
Could be defective memory, but most probably a non compatible issue, either from the laptop itself, or from that specific RAM you chose. But you would need to provide more information, laptop brand & model, and RAM brand & model.