The motherboard officially supports only up to DDR333. While you could get a P4C and some DDR400 and try it, you'd have to overclock the motherboard to get to the CPU/RAM's 'normal' speed of 200Mhz (400DDR), and you're not guaranteed to get there.
So a new motherboard is necessary.
So, if upgrading, you would want a new CPU, Motherboard, and RAM.
If you want to stick with Intel, you'll either have to find older socket 478 hardware, or replace your gfx card with a PCI-E one - thus adding to the price.
If you fancy giving AMD a go, you could either get an Nforce3 250 motherboard and stick with your present AGP card, or get an Nforce4 board and also get a new PCI-E gfx card.
There is a solution from ULi (for AMD only) that has proper implementations of BOTH AGP and PCI-E, but there aren't that many boards around that use it yet. Any other AGP + PCI-E boards you see use a crappy fudged solution utilizing the PCI bus and should be avoided.
I'd get an AMD Nforce3 system because:
Less heat and noise than the (new) intel (using stock Heatsink/Fans);
It's primarily a work PC, so justification for ditching a perfectly adequate Gfx card is hard to find, and besides, you'll be able to get high-end cards for AGP for a while yet;
For the same cash, generally speaking the A64s have better performance.
From your description of what you do, I don't think dual core is necessary, so a single-core venice should be fine - 3200+ or 3500+ perhaps.
Can't suggest much for motherboards, as I don't know what you would like, feature-wise (on-board SATA ports, sound, no. of PCI slots, etc). A cut-down board would of course cost less, but almost any Nforce3 board from Asus, Abit or Epox would probably suit your needs nicely. I'm assuming no overclocking here.
RAM isn't really something I keep up on, but again assuming no overclocking, any half-decent PC3200 will do (e.g. Crucial Ballistix). You could survive with 512Mb, but I'd have to suggest 1Gb (too much is better than too little!)
The other stuff could all be robbed from the old system, but of course a reformat/Re-install of windows is recommended with a mobo swap.
Well, that turned into a bit of an essay, but I guess that's just what happens when I've got nothing to do in the last half hour of work
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