computer will not recognize more than 512 megs of Ram

Try restarting the computer and hold down the Command, Option, P and R keys and let it tone twice. After that let it start and go under the Apple and see what memory it shows.

However

I had an issue with a clients machine much like what you posted. With the computer turned off and unplugged please follow the instructions to remove the memory:

MacBook Pro 15" Core 2 Duo Model A1211 RAM Replacement

When the memory is out see if you see any burnt spot on the memory or logic board under the memory. The one I had worked on shocked the IC under the RAM and damaged the track pad IC and RAM.

If that is the same for you then it is a logic board change and replacement of RAM.