Help] Buying a new Graphic

Alright, so my graphics card burned out on me today, 1 year after I bought it. Now I'm looking for a new one, first off heres my specs:

CPU: Intel Pentium 4 Hyperthreading 3GHz
Motherboard: D865GLC/D865PESO
Power Supply Unit: 400W 15 AMP on the 12V cable (http://www.northq.com/products/powersupply/nq4001ext-usb.html)
Hard Drive: Maxtor 6B300S0
RAM: 4x 512 MB DIM DDR (400 MHz)

(remember this only uses AGP 8x not PCI Express)

I'm thinking about buying this:

HIS Radeon HD 2600 XT 256MB GDDR3, IceQ, AGP8X, 2xDVI/HDCP/HDMI, "Turbo"

Core Speed: 820 MHz
Memory Speed: 1.42 GHz
VRAM: 256 GDDR3
Memory Bus Width: 128-bit

Now my system is old, I know that, but atm buying a new graphics card instead of a completely new machine is my only option. I got a few concerns which I need answers to, which are the following:

The VRAM is GDDR3, now can my motherboard handle this? (I mean the regelar RAM is DDR or DDR2 so it got me thinking)
Is my Power Supply, powerful enough to power the system? (with that GFX card in)

Thanks in advice.

I would have to agree with him. At the most, a higher clocked 7600 GT (80 nm) would be top. There is no point in spending more right now on graphics, because it will be bottlenecked by the CPU. While some others might perform better, like dos1986 said, it'd be better to just save that money for a new board and all.

it'll work if it is agp 8x just the fact your cpu isn't doing the video card justice thus buying a less powerful card as to save money and still get bout the same performance.