No issues with your RAM, you have 2MB installed currently. The way RAM is organized on PCs can be a bit confusing to interprete. Of your 2MB the first 640k are conventional memory, the next 384k are "upper" memory blocks (UMB) which are not accessible by default. That fills your first 1MB, which coincidentally is also the maximum RAM the original PC could address. Anything above 1MB is considered "Extended" memory (XMS). On PCs the upper memory area is used for addressing e.g. the BIOS, addon ROMs are assigned addressing space in there and also the various video standards had different areas of memory allocated for addressing. On the original PC there was no physical RAM present that covered these 384k, but it was possible to add extra physical RAM and carve out some of the unused portions of the upper area as extra memory for use by DOS applications (special drivers on XT class machines and himem.sys on 286 and upwards). With more modern systems that use SIMMs the upper area tends to have physical memory assigned by default but some will still go unused due to the addressing of addon ROMs in the same space etc. but it's still possible to get a fair amount of extra memory out of it by optimizing UMBs (90-160kb depending on the system can be realistic). Back in the day it was almost an art to see how much extra conventional memory you could make available by optimizing ROM address placement in UMB and pushing drivers into UMB vs conventional memory :) anyway, hope that made sense.
