This was a tough decision for me too on my 8886. I finally went with 256 meg to keep the overall cost down. I fiqure if it proves inadequate I can hop online and order another stick of memory. Of course, with only two memory slots, and one filled with 256 meg part, the total can only be brought up to 768 meg.
I am currently playing Max Payne and Red Faction with 256 meg and a Duron 900 mHz processor on my desktop. It seems to work OK but MP stutters every once in awhile and RF often pauses to "load."
I've got to believe with all the processing power of these Sagers that games will work good. I should get my new Sager Friday
.. then we will see.