The fix for this is actually a lot more difficult than just reinstalling your old driver or updating to the new driver. I was able to use the method below to get back to directx 9.0b and now my card reports the proper memory size in dxdiag. From what I can tell the problem is actually in directx 9c.
You'll need the following to complete this work around:
Windows XP Pro or Home edition cd without sp2
Direct X 9.0b installation file -
http://www.jptsolutions.com/dxtools/...ate_redist.exe
WinRAR -
http://www.rarlabs.com/
DirectX UnInstaller -
http://www.jptsolutions.com/dxtools/DX9_Uninstal.rar
1. Download the DirectX Uninstaller and extract the files using winrar to c:\dxtemp (This is very important as the batch file will only read from this directory.)
2. Restart your computer into safe mode.
3. Place your Windows XP installation cd into your cdrom drive.
4. Run the undx9.bat file from the c:\dxtemp directory and follow the on screen prompts, when the process is complete restart your computer.
5. Download the directx 9b installer from the website above and run it, restart your computer.
Run dxdiag and check to see if your card is now reporting the correct memory size. You DO NOT have to reinstall your drivers after this process is complete.
Installation media with sp2 won't work due to the fact that sp2 media installs direct x 9 by default. The batch file above simply deletes dx9c and replaces it with the version from your installation media, in most cases this is dx8.1 and it easily upgraded by the dx9b installer from above.
Please let me know if this does or does not work for you.