Yeah go with that motherboard. Although I would suggest saving up some cash and getting something better, because it seems to me you want an Intel chip. So go with this...
It's like $66.00, only a buck more then you're spending on that motherboard. Not to mention it's Socket T (LGA 775). Supports Celeron D and Pentium 4, obviosly.
But if you want a card that supports AGP 8x, just get a Radeon X700, either that or a Radeon 9800.