We're talking explicitely about RAM. Here's output from one of my 850s:
The other one reports exactly the same amout of RAM.
It's weird this 480 MiB. The only thing that occurs me is thar some firmware/driver/BIOS uses some RAM, and keeps it from the SO. So, the router has 512MiB physically installed, but the OS can only use 480MiB. Because I can't get a reasonably combination of RAM chips that could give 480MiB. Based on the site pictures, looks like it has 4 (or 8, if using both sides of the board) memory chips. If one of them failed, we would lose either 128MiB or 64MiB - and this is assuming the router would keep working.
It would leave us with either 448MiB or 384MiB of RAM.
Wait.
OP says the router reports 352MiB of RAM. You say it reports 480MiB.
512 - 480MiB = 32MiB missing memory
512 - 128MiB (one bad chip of four?) = 384MiB.
384MiB - 32MiB (the same "missing" from yours) = 352MiB.
So. How about this? The system uses 32MiB form some hardware or firmware. This leaves the SO with 480MiB.
Looking at the pictures, looks like it has 4 memory chips. So, 128MiB each, giving us the 512MiB total.
His router lost one of the chips. Completely. And it kept working with 3 of them - just like our computers sometimes do, when we get one loose RAM module, for example.
So, his router has (3 x 128MiB) - 32MiB = 352MiB. The math works.
How about it?