Yes that will work and perform very well. Great choice.
I personally use the ABIT IS7 because it is just as fast and cheaper than the IC7. Just buy a nice dual channel PC3200 kit, or PC4000 if you want to overclock. Geil, Corsair, and Crucial have all worked fine for me on IS7's. The only bad thing I can say about the IS7 and possibly IC7, is that you may encounter sound issues with the integrated sound. I've never tried it, but a friend had some issues with background noise or hiss on on his. And i know I have read he isn't alone. At worst be prepared to spend a few bucks on a nice sound card. I have used SB Live 5.1, Audigy 2, and Santa Cruz's on with great success instead of the integrated sound. But you could always try the integrated first.
There are many AMD fans who will soon be posting about buying an A64. I have nothing against them except maybe motherboard choices compared to the i865/i875 choices. I wouldn't talk someone out of A64 if that's what they want. But the P4 800 bus chips are arguably just as good and IMO the chipsets are better. All depends on preference and useage. I'm not sold for or against the A64, but i do like the i865's. I've had very good experiences with them for great performance and rock solid stability.
Yes it will work, and it will give more than reasonable performance.
however, call me an AMD fanboy if you like, I would consider a Athlon64 3000+ nevertheless. Its about the same price, or even cheaper, faster in most apps (especially games), slower on some apps (typically media encoding and 3D rendering); however, performance is not the main argument here. Unlike the P4, the A64 gives you:
-compatibility with upcomming 64 bit windows and apps
-NX ("no execute") support, using windows XP SP2, this will give you extra security, protection against worms and viruses
-Cool& Quiet. If you are not running very CPU intensive apps, the cpu will throttle back, so that the fan runs slower (or even completely stop) -> less heat in the summer, and a silent PC
I think these benefits are worth a consideration, even though I'm fairly certain the P4 3.0C won't dissapoint you either, at least not in the short term. Once a usefull ammount of 64 bit apps come out, you might be a little frustrated not being able to run them though, especially something to keep in mind if you expect to keep your pc for several years.
= The views stated herein are my personal views, and not necessarily the views of my wife. =