Intel uses DVMT (Dynamic Video Memory Technology) for on-booard graphic share memory.
It will share system's on-board memory for graphic share memory, but keep most of system memory size for usage.
Please check VGA memory size refer to Intel's FAQ.
http://www.intel.com/support/graphics/sb/CS-033984.htm
With BIOS default setting, graphic memory only use 64MB physical memory, but total DVMT memory size is 1696MB under Windows. System memory availible size is 3.88GB out of 4GB.
