My desktop system has an Athlon 2600, GA-7VT600-1394 (I think this is the best value M/B, even though it has no onboard video), 256MB DDR400, 120GB WD CaviarSE HDD (JB model, 8MB cache), S3 Trio64V+ (1MB VGA card). Personally, I reccommend a system like this, except with a better graphics card. Check out Gigabyte's comparison sheet for K7/Athlon motherboards to see the difference between the various M/Bs:
Do you really want or need a Micro ATX mobo?
My thoughts on the GA-7VM400M: it's not very extensible. I have no idea how well the graphics card will work, but I would get a cheap AGP card (I'd go with a Geforce4 - the drivers are easier to set up, from what I've heard) and not use the onboard video. You never know when you might want better graphics!
My mobo has firewire and SATA onboard - both appear to be the way of the future. It also supports DDR400, which doesn't cost much more than DDR333. But the most important thing for me is the 5 PCI slots. I want to be able to plug as much as possible in, in case I need to at some later date. The 8 USB ports are of little consequence. I strongly reccommend this mobo (GA-7VT600-1394), as it is future-friendly and is rather cheap for what you get with it. I got mine for AUD$108, and they're now a little cheeper than that.
If you don't know, AUD means Australian Dollar.