Building pc need now if these parts will work together

right now i am trying to build to computers for me and my bro to use , all we are looking for is something decent but only have ~400$ to work with between both , just something better then what we use whats not hard to do since right now we use an old dell with P4 2.5Ghz, 512mb ddr1, 32mb integrated vid , i been looking at parts from newegg and tiger direct , i wanted to know if this will work out,

i already have 2 DDR2 2GB chips that are i think 800mhz
i already got standerd heat sinks
and i already got 2 120gb sata drives

these are the parts im looking at geting

this mother board
http://www.newegg.com/Product/Product.aspx?Item=N82E168...

this processor
http://www.tigerdirect.com/applications/searchtools/ite...

this case w/ power
http://www.newegg.com/Product/Product.aspx?Item=N82E168...

one the main things i was not sure of is that the mother board says cpu support is only 1000mhz 2000mt/s and the processor says bus is 4000mhz ,, i wasent sure if this would work i seen newegg DIY bundles with miss matched speed but my friend told me this set up will destroy itself so im bit worried ,
please tell me if these parts will work and about the cpu speed thing
also if you can give any help on parts that would be cool , im trying get each system 200$ or lower , what i dont think is to difficult since i already got ram hard drive and heat sink