Should be fine to run 1GB in it. If there is a firmware update, you will probably need a Mac OS install to run it.
Does it matter which chip or slot you use when you only have 512MB? What if you put the 64MB stick back in with one of the 512MBs? Apple quote the limit as 512MB total (before the 512MB sticks came out), so if it sees 576MB (or 544MB if you had 2x32MB) then it probably isn't firmware.