Graphics memory isn't a big indicator of performance. It's very difficult to tell which graphics cards are better than others based solely on specifications. Video memory is pretty much irrelevant. 1GB 5770 is worlds apart from a 1GB 6950. There's so much more that determines performance, i.e. number of stream processors. Type of memory DDR3 vs. DDR2 vs. DDR5, etc. Aero is just pretty visual effects like the transparent taskbar among other things. Disabling aero should boost performance.
Also, you currently do not have a dedicated graphics card. The Intel 965 is integrated graphics which is grabbing its video memory from your RAM.
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