Ok, let me try to explain this good enough. A computer uses two bits, 1 and 0. If you have 32 of these, then you have 2^32. This comes out to 4GBs. As I said, the OS assigns physical ram from 00000000 and up. (this is the hexadecimal value of writing it.) The OS however needs to read/write information to the video card, or get information from the harddrives, etc. The video cards memory is assigned from FFFFFFFF on down. The more memory your video card and other devices have, the less memory address space is available for your physical. There simply isn't enough address space.
As I said, your video card is rather low end. 128MBs isn't very much memory, so it wouldn't take up very much address space. (as I understand things, it should only be taking up 128MBs of address space.) Along with everything else in your system, it shouldn't take up more then 1GB, so you should see 3GBs+, not 2.5GBs. Depending on what else is in your computer, there might not be any problem at all.