jason, I tried searching Toshiba's site for a M70-CL3 but can't find it. That doesn't make sense because they clearly have a M70 with CL1 CL2 & CL3 but none of those listed on their support site. So I'm in the dark here a bit. If you have a URL for official Toshiba support with specs and such, pls post it. Usually there are guides to how to open the case to reveal the slots, etc...
What specs I've found elsewhere seems that your model had 512MB as sold, and either a single 512MB module or a pair of 256MBs. Which did you have? All sources seem to agree that it has the capacity to have 2 1GB modules for a total of 2GBs system RAM.
Here's what I would try however. I assume you had a single 512 module to start with? And the 512 is still in the 1st slot and you addd the 1GB in the 2nd? If so, try swapping the modules. Or try using only the 1GB. See what differences that gives.
Where are you getting the 512 and 896 numbers from? The POST test, the BIOS? Within Windows?