It should work fine. However, be sure to use a good thermal paste and sand off all of the original thermal crud; a dual-core processor can put out a lot more heat.
Instead of upgrading to a C2D, I'd get a Core Duo original. Chances are, the prices will drop a great deal when the C2D is released, and the performance increase is rather small.
That's a pretty sweet video/audio editing rig. Remember, especially with dual-core processors, the more RAM the better.
NOTE:
The author of this post will proudly admit that he's a "cracker", and cannot dance worth a dang, much like most white males.