I think CPU-Z is wrong and the speed is proper. I checked with Everest and I even benchmarked the laptop. While is was the slowest PC3200 ram there, it was faster than most DDR 333 rams and hence cant be working at DDR 200.
Anyways my friend needs to add more ram, his laptop is really slow. I also wonder why they have reduced the ram speed form 533 Mhz to 400 Mhz ?