Windows 7 Why doesn't my full 1GB of RAM?

Not sure there's a question there. Are you asking why your system only reports 896 when you have 1Gb installed? Unfortunately you have left us guessing as to what you have for hardware but from here, the answer seems apparent.

1Gb = 1024 Mb
1024 - 896 = 128Mb

128Mb is a typical size chunk of system RAM on-board graphics systems snag and dedicate for graphics processing. So my guess is you have on-board graphic, and this is normal.
 
Like Digerati say's your system is probably sharing it with the graphics. You might have a setting in the bios to change it (the size shared) if you wish although usually it's best left alone..
 
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