I'm having the exact same problem with my Radeon HD 3650.  Only 256MB of
the 512MB are detected according to Xorg.0.log.  Apparently other linux
users have the problem too - here's a Phoronix thread that talks about
possible work around:

http://phoronix.com/forums/showthread.php?t=6648

I'm going to try it this weekend.  Should this issue be submitted to ATI
or is it truly a deeper problem?

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xserver detects only 256 of 512 MB video RAM
https://bugs.launchpad.net/bugs/247887
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