Video on old PC?

Now that I have a new computer for work and games, I have an old computer that I'm thinking about repurposing as a video machine. The computer is only a 266MHz PII. If I get a video board (like the Radeon all-in-wonder) that does all the video stuff in hardware, plus a DVD drive, will this work, or will the slow speed of my CPU be a bottleneck anyway? Assuming the answer is that I can do this, which card(s) should I get? Is there an issue with my AGP slot being old? I don't know the difference between all these AGP versions, I know it's not 4X but is there a difference between AGP 1.0 and AGP 2X? The board in the machine is an Intel "Atlanta" LX chipset. Thanks for any advice.

I don't think there's much point in buying a Radeon All-in-Wonder for use with a 266MHz machine. I'd look for the original All-in-Wonder (based on a Rage 128 chip), or maybe if you can do without the TV tuner, the Guillemot Cougar Video Edition (based on the TNT M64). Both are still available if you look hard enough.

~ I'm not AMD biased, I just think their chips are better. ~