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If I start up my Sony FZ11S into BIOS setup, can I convert some of my abundant RAM into 'dedicated' VRAM?
If so how?
I don't believe that you can although why would you want to when you can have a maximum of 895MB of VRAM when sharing some of the system RAM.
Here is the Specification for you machine that shows this.
Your card has 512MB of VRAM built in which is double or even quadruple that of most present in notebooks. Here is the video card spec.

My built in card is the 8400M GT not the 8700. It was built for perfomrmance and mobility. As such it only has 128mb Dedicated built in memory.. the bit rate and most other things are the same, however, I never use more than 40% of my system RAM. which is a mere 800mb. Leaving 1224 mb of RAM unused.
Where perhaps it will be dynamic and use the memory that it needs to, I would like to dedicate some memory to simply graphics. I can run command and conquer 3 high spec with NO slow down even in large battles...but 128mb is not that large to have as readily available.
I have to admit I don't know the exact way that the video card uses its system RAM but I know that the RAM is not connected directly onto the graphics card. So maybe conflicts arise when assigning the RAM....
I heard it could be done from Microsoft't tutorial on the video memory allocation differences in Vista....
Just to add - The 8400 is still so new that the drivers used are only Beta for another month!
The Windows Vista Display Driver Model (WDDM) is a new driver display architecture. Along with the Desktop Window Manager (DWM) it automatically handles the display properties and automatically allocates resources.
The whole reasoning behind creating the new WDDM is to take away any operator or application having the facility to 'ring fence' system resources as this has been the main reason for graphics based system crashes in the past.
For this reason you cannot 'reserve' graphics memory if the card has WDDM support. In fact you cannot even 'reserve' the dedicated graphics memory because WDDM will use that for other purposes if it feels like it. RAM and VRAM have become a communal 'pot' shared out by WDDM in the most efficient way for graphics performance and in the way least likely to compromise the system. I expect it can do it better than you can!!!

Correct me if I'm wrong, but every current Nvidia PCIe express card does support shared memory in Windows Vista. The shared Ram is only in use if there is a need.
Yes all the cards do.
Off topic a bit but what Windows Experience Index do you get for that graphics card?