Paladin: It's a fact that companies will tack on far more RAM than a card can use just to make it look appealing. However the speed of the card, it's RAM speed, the bits of the RAM, and the onboard processors are what determing overall performance.
In this case your card has 1GB ram but it might as well have 256 MB for all it can do with it. It's one of the slowest RAM types (64 bit, when even budget cards are 128 or 256 bit), the memory frequency is slow, the card frequency is slow, and it has a very small number of onboard processors.
That card is actually worse performing than the now-ancient HD 2600 card. A basic HD 3650 outperforms it, as well.
The second digit in that card number is the class, for lack of better terms. The 6 and 8 series are what you might look for when shopping for a card to play a game with. The "4" cards are more tailored the budget "office computing" level.