Does RAM go bad ?? Well, yes it can.... Can you fix it? Possibly

Grab an pencil/ink eraser from the stationery supplies first. This has saved several systems over the years...and shortened the troubleshooting time as well for weird issues.
Just suffered a kernel panic on reboot. Then noticed only 1 stick of RAM showing (256meg).
Pulled the ram..did the process of elimination. Nothing certain. Still erratic on POST, including failure to boot at all.
Inspected the RAM contacts...hmmm a bit dull (ie tarnished).
So, observing static precautions (handle with an antistatic bag etc), take an ink eraser (something with a bit more bite than the smooth pencil eraser) and rub down the contact edges to restore some shine.
Placed back in ram slots and all's fine. Rebooted 3 times straight, no issues.
So yes, ram (and cards) can go "bad" in the sense that the contacts can tarnish. Just clean up with an ink eraser.
Whilst I was at it, pulled all the PCI cards and cleaned them up too after confirming the RAM was fixed.