Cheap PCIE Video Card prevent me from overclocking system?

I'm considering building a new system, but I want to keep costs down as much as possible (by eliminating things I don't need, not skimping on parts that are necessary).

I'm looking at the following MB / CPU combo:
Intel Core Duo 2 6300
Gigabyte GA-965P-DS3

It is my understanding that they're very good for overclocking.

Now, here's the hitch: I have to get a PCIE card but NEVER do any gaming (3D games give me motion sickness). If I buy a cheap PCIE card like a BIOSTAR V7102GL13 GeForce 7100GS, will I still be able to successfully overclock the CPU? Could I go even cheaper and just use an old PCI video card?

Will the Ultra V Series 500W PSU I have be okay for the project?

TIA

Thanks. I have no plans to go to Vista until I'm forced kicking and screaming.

As far as the PSU, I read "the +12V rail provides 28 Amps".

I use the system for ripping my personal dvd collection to Xvids, raring and unraring files and buring DVDs.

So, it's probably stupid for me to even spend money on this system over my AMD XP 2700 that does just fine, but I'm hoping to spend less time watching progress bars (and also to repurpose my current MB and CPU for a file server).