Yes, Intel Extreme graphics is Shared/integrated video memory. This means there is just a chip on the notebook motherboard (or desktop motherboard) that takes care of the video functions but there is no video card in the computer.
Many of the shared video setups I have seen have 64mb shared video memory by default but you can adjust how much video memory is being used. However, it is taking part of your system RAM to do the video function and this type of memory will not play some games at all (and having less RAM your notebook will be slower on certain demanding video functions even if it does work).
DVD's will play fine on shared video memory and simple games and the internet/Microsoft office is ok.
But you are better off getting dedicated video memory if at all possible as it is not upgradeable later on a notebook (you can easily add a video card at any time on a desktop with an available expansion slot).
Many notebooks at 5.5 pounds or less have shared video memory as it does take a bit more space and weight to have the extra cooling for a video card on top of the motherboard.
There are not too many dedicated video notebooks under $1000 but there are many between $1000 and $1500 which is the sweet spot for notebooks right now.
I was just wandering what the Intel extreme graphics 2 card is comprable to. I.E. 32mb, 64mb, etc. Or is it a shared graphics card? Thanks