You are right it is not possible that you memorize all the words on the list.  There were guys who had known almost all the words in Barron;s 1500 list and secured above 1400 score. I think you need to go at least 2 time thro all the words in the list. On the other hand, practice on the passage, that will save you a lot time. If you are comfortable comprehending the passages easily , you will do better on the other sections of verbal.

Finally, it depends on which college you are applying and what program. Plan wise beforehand and look for college that will provide asssistanship in the first sem and apply for 1 top college .. 2 mid (accourding to your score) and 1 safe option (that will accept you anyway)