DDR2 with Celeron D 346?

Hi

I'm looking to do a budget upgrade (new mobo, Celeron D 346, 512MB 667MHz DDR2 and 7300GT) with the plan of dropping in a Core 2 Duo and more RAM later on. Will the Celeron work with DDR2?

If not I guess I'll have to go with an AM2 Sempron for now and swap it out for an X2 later, but I'd much prefer the Core 2.

Am I right in thinking this would play most modern games with the quality dropped to low and most of last years crop at decent settings?

Any other ideas for a cheap mobo/CPU/RAM/GPU combo with a good upgrade path?

Cheers.

if the mobo supports the celeron and uses DDR2... why not?