The 1 meg chip ram reported is normal. The Kipper2K is a fast ram expansion and will not upgrade the chip ram. As Paul1981 said, to upgrade chipram to 2 meg (MAX) you will need a trapdoor ram expansion.
Besides making sure the the 68000 CPU IC contacts are clean though they shouldn't need cleaning, make sure you have pushed the Kipper2K board properly over the 68000. You need to give it a good press over the 68000 so that it fits properly and tight and make sure you are fitting it in the right orientation.
I have the 2007 Kipper2K board and they are very good.
