Inspiron 2200 Memory upgrade troubles

I have an Inspiron 2200 laptop that has the built in 256k memory. Nothing in the expansion slot.

This laptop is like new, hardly used, leaves the house a few times a year when traveling.

I want to upgrade the memory and bought a 1gb ddr1 memory card for it.

When i install it, the laptop powers up and the video is all scrambled. It recognizes that the memory size has changed and will take me to setup. I can see in the scrambled display that it now shows the right new memory size. When i exit setup and windows starts, it too is scrambled and unusable.

I have downloaded and installed the latest bios and the latest video graphics drivers for this model from the Dell support site. No change.

I have also removed/re-installed the memory card at least 5-6 times, no change.

Im going to return the memory to where i bought it, i assume its bad. Seems like an odd way for memory to act though. Any ideas?