That's the real problem. If it was a lack of video ram then it would likely be a crash or error message. The 7150 is not a gamer's chipset so try this. Reduce all the settings you can in the game.
About the video ram. This is DYNAMIC and is called upon when textures and such are needed during gameplay. You will find long discussions about this which I will not repeat here. All is fine and working as it should be.
I have a HP pavilion dv2610us.
-2gb pc5400 ram
-160gb 5400rmp hard drive
-AMD Turion 64 x2 1.9
-Nvidia Geforce go 7150m
Written on my laptop and in the advertisements for this laptop it claims the shared video memory can go up to 287MB. In my bios I changed it to 128 but that is the max it allows. It also says in Everest that I am only using 128mb. I am wondering what is going on how can I make use of the full 287? I am trying to play torchlight a game with relatively low requirements and with graphics on low I still lag considerably. Thanks for your help!