No. This is incorrect. NV2 requires at least 500 MB of RAM. If the RAM available is less than 500 MB then NV2 will not install and the installation will provide a message that the system requires at least 500 MB to install.
Users that have systems with 512 MB RAM and receive the message above should check their System Properties (right mouse click My Computer > Properties) under the General Tab and review under Computer the amount of RAM available to the system.
Systems with 512 MB of RAM that have less than 500 MB available have a device (like a video card) that is using memory resources that is pushing the RAM available below the 500 MB minimum.