Yea it will be fine and is preferable to a GDDR2 card as a Gddr3 card will be faster. Dont know what card you are looking at but if you have the choice between say a 7600GT with GDDR2 or GDDR3 always get the GDDR3 one.
Mactronix
Plug the monitor into the video card. If your monitor takes a different cable, then there are adapters that will help you. Try looking for a DVI to VGA adapter.