It should work fine. Far better than 630i. Performance aside, it's reliable and don't have the weird problems, which is a big difference. I'm not sure where the 1600mhz fsb comes from. G31 chipset's official fsb support is "1333/1066/800."
http://www.intel.com/Products/Desktop/Chipsets/G31/G31-overview.htm
The bottom feeder chipset haven't even been known to be able to overclock to 1600mhz, so that was either a typo or scam.
Since it's only $5 less than the cheapest p43, at $65 after mir, the performance difference would be too much to trade off for such a small savings. Unless there are cheaper board using that same chipset, it's not worth it. The fact that it's an old chipset being phased out is also not promising.
Current Intel line of motherboard chipsets:
"G" - economy line. microatx. Low end, low performance, cheap. Current generation include g43/45. Previous generation include g31/33/35, out of production, to be replaced by g43/45.
"Q" - economy line. microatx. Low end, low performance, cheap. Previous generation include q33/35. No current generation, in favor of G.
"P" - mainstream line. atx. mid level, mid-high performance, prices vary, depending on model. Current generation include p43/45. Previous generation include p31/35, out of production, to be replaced by p43/45.
"X" - high end line. atx. high level, high performance, expensive. Current generation include x38/48, both introduced at around the same time. No previous generation.