This is normal. Windows 7 will make use of any available memory by preloading it using "Superfetch" with what it thinks you will need next to help speed up performance by having it ready to go from memory on the fly instead of having to load it from the hard drive each time as requested. If you do not need it, then it will just dump it from memory when it needs the memory for something else automatically. Superfetch learns as it goes to help determine what and when you run and open stuff to help better improve what it loads in memory as well.
Also another side note, the kernel will use up all of it's 200mb? Idk how large the win kernel is actually lolz but it will load the kernel into ram when your not doing something just to make things smoother. It should load most of the OS's stuff into memory when your not being to active as that's how you get such a 'snappy' response from the system as well. That should take up to 500MB-1G of ram as well.
System Manufacturer/Model Number Custom OS Windows 7, Linux CPU AMD Phemon II x2 3@3750 Motherboard ASRock M3A770DE Memory 1G Crucial 1666 Graphics Card 8800GT OC (custom OC) Sound Card Sound Blaster Live! (never changes!) Monitor(s) Displays Vivitron 22" Screen Resolution 1600x1200
Keyboard Logitech Mouse Logitech M-BZ15A Laser PSU 450w Case Unknown Cooling Custom Air cooled Hard Drives Western Digital 120G/160G SATA
Maxtor 80G IDE Internet Speed Cable 10mbit
The free mem reading,, is what is not being used at all by anything, but available for use if needed.
Could this be concidered wasted memory? in a way, yes. But, if for some reason, something needs it, it is there to be used.