Intel(R) video controllers do not have dedicated memory. They all use shared memory from the RAM installed on the system and reserved to the video controller through a technology called DVMT (Dynamic Video Memory Technology), which dynamically adjust the amount depending on how much is needed.
The amount of memory used for graphics may be a fixed amount or may vary up to a maximum amount. It depends on if your computer manufacturer has configured your computer to use a fixed amount, a dynamic amount (varying up to a maximum amount), or a combination of both fixed and dynamic amounts of graphics memory.
In this case, I suggest you to check directly with your computer or motherboard manufacturer to see if there is any option to set a fixed value with a higher amount of memory than the one that is being reserved.
Then why does it shows 64mb for dedicated memory if it has none?
I am having the same problem as well how do i increase it? i tried going to BIOS but there is no graphics tab,,, please help
Why do you think that you need to increase the amount that is "dedicated"?
The driver uses a small amount (~64MB) of driver for internal house keeping purposes- that memory is taken at boot time. All other memory needed is dynamically allocated to graphics as it is needed - up to 1.7GB on a 4GB system. This is more than enough for all applications that you would be running.
While some games may list "512MB dedicated VRAM" on their min spec, that only applies to discrete graphics cards where access to system memory would be too slow over the PCIe bus. For integrated graphics devices, all memory is system memory - marking it "dedicated" doesn't make it faster and would just mean that it was unavailable to the operating system to give to applications on the CPU if graphics isn't using it.
Some systems include a BIOS option to increase the amount of memory that is "dedicated' (e.g. stolen at boot) - but you should be aware that this is NOT required for well written apps to function properly and basically reduces the memory available for regular operation.
There are a few exceptions to the above - that is, a couple games that actually make (incorrect) decisions based on the amount of "dedicated" memory they detect. The ones I know of are: Pro Evolution Soccer 2009, 2010, 2011, Grand Theft Auto IV, and some of the Total War series of games. It appears that PES 2012 may be fixed with a patch. For GTA:IV, some people have had success with command line switches.
Because some games check for dedicated memory and won't even start if just 64MB of dedicated RAM is applied.
As I indicated, the only games that I am aware of which have issue with "dedicated" memory are Pro Evolution Soccer 2009-2011, Grand Theft Auto IV, and Total War.
GTA IV - game fails to draw some objects in the scene - command line option may allow you to workaround
PES 2009+ - game will not run above low settings/resolution; 2012 appears to have a patch
Empire:Total War - game disables some options (high settings)
Are there other titles that you are encountering issues with?