On another hardware site, one run by a UK based hardware selling company have done a test with 2 identical geforce 560 cards (running off my memory here, don't quote me on the card), but one 1gb and another the 2gb equivalent. In graphical intensive gaming at higher resolutions the difference in "playable" fps in favour to the 2gb card I found was eye opening.
It seemed that the sweet spot at the moment was roughly a few 100mbs above 1gb video memory. So 1.5-2gb memory for running all of today's games at max and at a decent resolution seems a must.