This seem to have nothing to do with the card or memory.
But rather that RadeonHD AND Radeon drivers are loaded, RadeonHD is prefered(where mess starts), RadeonHD is unable to identify the card, unable to detect vram size, bails out returning no screens, Xorg bails out cause it cannot work without zero screens.
Uninstall radeonhd, keep only radeon(x11-x86-ati) driver.
Should work.
If not, you can always use text consoles, or even chroot from LiveCD and add/remove drivers if grub fails. Cheers.


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