Are you sure that your video card only has 1 meg of video memory? If it does, I suspect that it'll "share" the system memory to bring it up to something more reasonable, like 16 megs. You won't have 3D acceleration without DRI from http://dri.sourceforge.net/
Just grab the proper binaries and install them, then boot back into X, run glxinfo and you should see a line resembling:
Direct Rendering: Yes
This is what you want, if it still says no (as I assume it does now) then you'll have to do more twiddling before you can get 3D acceleration.