I'd say you'd be just fine with DDR2 800 - get 2x2GB at the standard 1.8v with good timings if you can. You ought to be able to find a kit for $50 or so, maybe less.
I would suggest either a Gigabyte or Asus P45 board. You're talking maybe $150, probably less.
Another suggestion - get a better PSU - try something from PC Power and Cooling, Corsair, or Antec. I wouldn't get a Thermaltake myself.
You could buy faster 1066 ddr2 but not low latency 5-5-5-15. I was told Intel does not use tight timings like AMD.
I am sure Intel is able to use tight timings but it will matter less than the amount and clock speed.
This is where tight tmings would not matter: [url=http://www.houseofhelp.com/forums/showthread.php?s=d75cb100c888cfc3275f25325d4b7c55&t=74146&page=4][/url]
Even if you OC that E8500 to FSB of 400 to have a 1:1 ratio with your RAM (DDR2 800), you would get that processor up to 3.8ghz - no need for the DDR2 1066.
Just get quality DDR2 800 RAM at or near the standard 1.8v with good timings.
If you want to OC that CPU even further, you can OC the RAM as well.
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