In looking at this closer, the man page specifically addresses this:
"By default, the i810/i815 will use 8 MB of system memory for graphics
if AGP allocable memory is <
128 MB, 16 MB if < 192 MB or 24 MB if higher. Use the VideoRam option to
change the default value.
"For the 830M and later, the driver will automatically size its
memory allocation according to the
features it will support. Therefore, the VideoRam option, which in the
past had been necessary to
allow more than some small amount of memory to be allocated, is now
ignored."
So the fact that it is not possible to set VideoRam is by intent, and so
this is not a bug.
If you disagree with this and want to make use of the VideoRam option
for manually controlling ram allocation, I would encourage you to talk
about your needs directly with upstream via the xorg@ mailing list.
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: Confirmed => Won't Fix
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Intel ghraphics - VideoRam value locked. X.org Disregards manual value
https://bugs.launchpad.net/bugs/396655
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