I successfully run 3GB in my A1176 Minis. When I put the 2GB chip in the bottom slot with the 1GB chip in the top slot, the machine would not boot and the power LED would blink continuously. When I put the 1GB chip in the bottom slot with the 2GB chip in the top slot, the machine works perfectly and sees all 3GB of RAM. (I don’t know if this is a rule or not, this is strictly my anecdotal experience.) I have *not* experienced installing 3GB and having the Mini run and only report 1GB. If you do that, I’d recommend checking to assure that the 2GB stick is seated properly.
I’ve also used 4GB without any trouble in A1176 Minis, but this model can only address a maximum of 3GB RAM. I have run performance comparisons between one equipped with 4GB and equipped with 3GB RAM and they measured identically. If you’re upgrading an A1176 from 2GB (equipped with a pair of 1GB chips) to 3GB, you can save a few dollars by just buying a single PC2-5300 2GB stick.