What happens when you boot with just one RAM. The DDR2 memory that you put in will have 800 MHz frequency, but on board the default frequency will be 667 MHz. If possible try booting with a 667 MHz frequency DDR2 RAM.
But first check the RAM on another computer. Have you contacted the computer seller. What did he say? When testing the RAM use the bare minimum configuration i.e. Cabinet, Motherboard, Processor setup. Do not connect any other devices. And make sure the board is not shorting with any other metallic part. If take the M/B outside the cabinet and try booting with one RAM first, then with both the RAMs. Interchange the slots and try one at a time. Tell me what happned?
I noticed this problem with the DG41TY motherboard. I don't know if others too have noticed this or not. Just want to confirm.
I changed the memory frequency of the 2GB RAM in the BIOS setup under Advanced -> Memomry/Chipset configuration.
The moment I changed the frequency to 800 MHz from 667 MHz and restarted the computer, I saw a dotted like across the screen in the lower half of the monitor. I rebooted and reset the frequency back to 667 MHz. The line disappeared. Is there a problem with the DG41TY motherboard or is there something I should know about before I use this 800 MHz frequency?
Pse do not rush into updating the BIOS as soon as you have a problem. Try to find out more about the component from the manufacturers support, just like you did with the Intel website. Updating the BIOS has become the norm nowadays, and since most people have access to fast Internet connection, they immediately update thier m/b BIOS.
Updation is not always the right thing. Searching and analysing is the right thing. It should be done as the last resort. This is not just an intelligent advice, its what I would do.
Better luck in solving your problem. Don't stop, Keep posting.