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You don't specify a few things like your FSB or RAM speed, but judging by those specs alone I'm sure you should be able to play it with moderately high settings, and probably still get around 30-50 FPS in the game. Should be quite playable.
And yes, the wired and/or wireless Xbox 360 controller will seamlessly integrate into the game if you launch the game with it connected.
Ouch, I hate double posting, but here's an important tip: the game would probably run a fair bit better on that same hardware if you could upgrade to Vista 64-bit edition. If it's at all a possibility, I would strongly suggest you do so.