Why isn't all my RAM utilized?

Hi there,
I have a PowerBook G4 17” 1.67 GHz running on OSX 10.3.9
The system came with 512 MB DDR SDRAM and I had the shop add an additional 512 at the time of purchase - 1 GB total. I have noticed since the point of purchase (two years ago) on the Activity Monitor that the system never uses more than 450ish of my memory at any given time no mater what I’m doing. I run video processing software (Final Cut Pro, MAX/MSP/Jitter) and I would expect it to utilize more RAM, seeing that there is a Gig it could use. I am concerned because the video processing work that I am doing requires at least 1 Gig of RAM and I’m wondering if some problems I am having with my video processing is actually a product of my system not utilizing all the RAM available to it. I can see two 512 chips in my system profiler. The Activity Monitor displays that there is at least 550 MB unused at all times. It seems one chip never gets used. Is there some way to allocate memory to a program in OSX? Why isn’t my system using that RAM? Is there a problem, or is this normal?
any insights here would be most appreciated.
thx - renee

Please explain.

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