According to Mushkin.com, 1GB modules are supposed to work.
"ASUS P4B533: Intel i845E DDR chipset(Intel website)
We have qualified the ASUS P4B533 as fully compatible
with the Mushkin Level2 (2:2:2) PC2100 and PC2700 or
higher DDR DIMMS including the new 1 GB unbuffered DDR
Modules
USER TIPS: The P4B533 supports PC2100 and PC2700 DDR
133 / 533 MHz version and allows for full user control
over the memory timing settings in the Advanced / Chip
Configuration menu in the BIOS. The P4B533 had no problems
running 2 x 1 GB unbuffered modules for a system memory
configuration of 2GB total (highest density supported
by chipset) even in PC2700 mode."
Looking at the part number, Kingston recommends KVR266X72C25/1G
and you have purchased KVR266x72RC25L/1G. The "R" stands
for "registered" and that won't work in the board. You need
the "unbuffered" 72C25 instead.
This part is "registered" and is the wrong one:
http://www.ec.kingston.com/ecom/configurator/partsinfo.asp?ktcpartno=KVR266X72C25/1G
HTH,
Paul