There is no need to do a reinstall, just hold both mouse buttons down on restart, go do dh0:devs/monitors and move the cybergraphics or picasso monitor out of the monitors folder, reboot and you should be fine. :-)
As for you not having enough memory to open the screen... cant help to much with that.
As I said, try removing one or two banks of memory chips from the 8up board and see if that helps. (Its a bit of hard work as all of the chips are DIP's)
You could just put up with 256 colours at 800x600 for a while, you never know, you might grow to like it. ;-)
A2632 cards are rare so if may be easier to find a CPU upgrade that can take more memory.. like most/all 040 cards.
Not much in the way of A2000 CPU upgrades on ebay at the moment though. :-/