1)Yes you can, would it be worth it? No.
2)First things first, what's your budget? if your not afraid to venture from the heard, then you can only gain from choosing to go with AMD. I will make more suggestions when I hear about your budget.
3)Depends, I have never seen many Mobo/cpu combo's that didn't have a little extra on the price because they are generally sold in stores, if you are carefull and smart about it, you can get both seperatly and save yourself a few bucks.
From what I can see, that Mobo uses RD RAM which will be your first problem, none of the decent motherboards these days use RD RAM, also, do you ahve a video card in that AGP slot? (the brown one above the PCI slots, sorry not trying to make you sound stupid, just dont know if you know)
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