Unfortunately, all the MBs I've seen that support both are pretty much low-end kludges with third-tier vendor chipsets. The MB you mentioned seems to be the same.
The answer to your RAM question is "it depends on the system." Core2Duo-based systems are easily and safely overclocked for major performance gains, and require DDR2-667 to DDR2-800 or faster RAM for good performance when OCd.
AMD 64 socket 939 systems still make good use of DDR-400 (or even DDR-500 or super-low-latency DDR-400 if you can find it). Since budget seems to be an issue in your case, I would strongly recommend going with a socket 939 system.
Here's what I would do:
<B>MB</B>: new/gently-used from ebay. As socket 939 nears the end of its mainstream life, many people are upgrading to C2D systems or closing out unsold socket 939 boards. I was able to get a lightly-used MSI K8N neo4 Platinum MB w/accessories for around $50 including shipping.
<b>CPU</b>: Budget alternative is a $20 Sempron (frequent deals at e.g. Tiger); higher-end would be AMD 64 x2 3800+ for around $150.
<b>CPU cooler</b>: OEM if you get a boxed processor; Arctic Cooling Freezer 64 Pro otherwise, which should allow some decent overclocking.
<b>Graphics card</b>: this will be the main determinant of gaming performance, so get something decent in the $150 range unless you want to go whole-hog (you can get x1950 cards for $250 now).
<b>RAM</b>: Your current DDR-400 RAM.
<b>PS</b>: It's important NOT to skimp here for stability and OC flexibility. You want good power on +12V2 for the CPU (and possible future CPU upgrade) and on +12V1 for the system, including graphics card. Here's something decent:
http://www.newegg.com/Product/Product.asp?Item=N82E16817189005
(around $55).