Can I upgrade to XP clean install like I did Win98 with a boot up disk? I will run XP on a future built system.

Can someone suggest a graphics card for this system I'm about to build. I'm trying to stay under $700.00 total along with the below items.

Motherboard - Asus P4B or Supermicro P4sBA
CPU - Intel P4 1.6 GHZ
Maxtor 40 Gig 7200rpm ATA100
256MB PC-133 or (will PC150Work?)