It should work, but I'd get more, faster RAM. I don't know for sure what AM2 can use, but the motherboard apparently supports DDR2 800. But otherwise, it should work fine.
Oh, and if it's just a file server, why not get something like a Geforce 6200?
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Desktop * Athlon X2 4200 | 2G RAM | 160G HD | 7600GT
Laptop1 * C2D T5550 | 3G RAM | 120G HD | Intel x3100
Laptop2 * C2D T5250 | 2G RAM | 160G HD | Intel x3100
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