I thought this might be the usual display issue where you buy something that's advertised using one K as 1,000 (for example), then install it where one K is actually 1,024 which naturally makes it look like you have less. Hard drives were famous for this (plus when they were formatted, more space was used so less was available). However, after reading your first line that it initially did show 12 GB installed, I can only presume that your PC is old and already losing it's memory.
(As for real, usable advice, if Slart's suggestion doesn't pinpoint the issue, it might be time to take it to a Geek to have him figure out why 1 GB is not being recognized.

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