I would be trusting GPU-Z as it's most reliable. dxdiag is likely to show your total or combined video memory which is the dedicated 512mb from your card and shared memory from your ram.
So your card physically only has 512mb memory but with 'turbocache' it has 1gb by using some of your system ram I believe? Zotac or Nvidia would possibly have some software for 'turbocache' or it could be automatically done? I'm not too sure about this.