The general spec is good, but unfortunately the graphics card is seriously letting it down. No real point in overclocking it anyhow, you can't turn a pea shooter into a machine gun... And for goodness sake, DON'T get overclocking advice from Harjun!
Even though laptop graphics aren't upgradeable per se, I think there are some external graphics solutions available, but they are costly. At the end of the day, a desktop will always be better for gaming.
Toki, the graphics card itself is probably only 64mb.
The 'up to' means that it will use some of the system memory to make up the difference when it needs to, ie ALL THE TIME when playing a game.