yes your card will work fine till you get more ram.
I'll share with you one thing from experience. I started out with 1 gig and it waz fast, and then i uped to 2 gig, and the proformance jump was unreal, i couldnt beleive the difference from 1 to 2, then I uped to 3,and couldnt tell much of a difference from 2 to 3, so if I were you i would shoot for 2, and not worry about uping any farther than that for a while.
I'm just curious, what mobo do you have? I want to see how the psu will install on it.
DFI infinity RS 482
3Gig Corsair PC 3200
AMD X2 4400+ 2.4ghz
250Gig Samsung SATA 3.0 7200rpm
250Gig Hatachi SATA 3.0 7200 rpm
60Gig Maxtor ATA 5400 rpm
2x160Gig WD SATA 7200 rpm RAID-0
ATI X850XT 256mb
Antec TruePower 430