It may have looked like was seated but it wasn't.
After you get a new RAM stick, read the motherboard requirements. See if you can install a larger stick in the middle slot. My guess is no.
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I currently have 2 256mb ram installed on my pc, one is in slot 1 & the other is in slot 3. I've recently bought a 512mb ram & installed it on slot 2 but when i rebooted my pc there was a burning smell. I uninstalled the recent 512mb ram & rebooted with no probs. What am i doing wrong & why was there a burning smell?