Here's the problem: I have code that allocates a bunch of 512x512x32 textures (about 1MB apiece). Oh, you should also know that i have 1 GB of available system memory. I'm running with the Tungsten Graphics 'Gallium' driver on Ubuntu 9.10 Karmic Koala.
(It's my understanding that the GMA500 is a PowerVR under the hood, but I'm not sure). I am working on an embedded OpenGL graphics application running on an Intel Atom z530 with the GMA500 graphics hardware.