Chip RAM is the 2 MiB of RAM that comes built in to the A1200. It is called chip RAM because it is accessible by the custom chips on the A1200 motherboard.
You'd need at least 24 MiB of additional memory in the accelerator card for Total Chaos to work. Since most accelerator cards have only one socket for memory expansion, you will probably need a 32 MiB memory in that socket to get Total Chaos to run correctly.
