If there is a chance of running Linux on this machine, you don't want an ATI graphics card. Another vote for the passive 7300, or for your use even a 6200TC would do as the 64MB of ram on the card would be more than enough.
As for virtualisation support, even the cheapest AM2 socket athlons have it. Don't the core2 current range have it too?
Another nail in the P4 coffin: It can't do I/O to memory over 4GB in 64 bit mode, so large memory systems can slow down. No idea if they fixed that on the core2, but I would hope so. Including the graphics card, your system is having to address 4.25GB of memory there.
Oh, and I am typing this on a Fedora 7 Linux VMware virtual machine, hosted on a dual core P4 3.2GHz with 2GB of ram running Windows XP Pro as that is the company standard. It feels very lumpy compared to any VMware guests on my single core Athlon 64 3000+ (overclocked to ~3800+) which runs Linux as a host OS on 1.5GB of ram. I don't know how much of that is the P4 and how much is having Windows as host OS but I can't say I am impressed with this P4 configuration
Hope something in those ramblings is of help