Will Increasing Dedicated Video Memory Increase Gaming Performance

Depends on the game. Most games that need more vram are quite high end, ie BF4. IGPU simply can't cope. Dedicated memory is quite different from discrete vram and increasing this would only make a difference if it were set low to begin with and if the igpu could sustain usable frame-rates on the given particular game title as well. Then gaming performance could\might well increase. Hope that is clear enough.
 

I currently have 8GB of dual channel memory (2x4GB) and I noticed that on Windows 7, 54MB is "Hardware Reserved". Is that what you mean by Dedicated Video Memory? How do I increase it for gaming?

My hardware is,
i5-3470 quad core
8GB (2x4GB)
Radeon HD 6850 1GB GDDR5

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I'm also very new to Battlefied 3, having only recently migrated from Windows XP (which can't play BF3 since 2011) to Windows 7 operating system. I also don't know if increasing dedicated video memory will increase BF3 performance. The 1GB GDDR5 on the graphics card is fixed, so do you mean increasing the allocation on the 8GB of main memory? Again, how do I increase the dedicated video memory??