I remember the days of my P2-400 and a near-first edition dvdrom. They were hell, freezing all the time etc.
But one thing i found was then when i went back to this pc a year or so ago and installed newer versions of powerdvd or other software, then the dvd player worked much better. So i felt i had narrowed the problem down to the first dvd software being poorly written. I still have that P2-400 and it plays dvds just fine now. 256mb ram and 8 mb intel i740 video card (i think thats the name of the card).
But i also think i have a newer dvd player in it as well, so it could be a combination of newer software and newer dvd player. But i dont think a low mb vid card will be a problem. And when i say newer dvd player i mean only like 10x or better. The newer ones, i think, go up to what, 40x.
You dont need to have a new dvd player, just maybe not the first editon.
I bet your setup would be fine as long as you use software that isnt too old. You might want to add a bit of ram since its so cheap now, but it will likely work ok as is.
I may be all wrong here but i am only telling you what works for my old pc.
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