With DDR2-800, you can use up 1333MHz FSB CPUs (technically 1600, but that would involve OCing).
From what I can find, the 800MHz FSB CPUs aren't much cheaper, but tend to be lesser in other ways than slower FSB (the FSB speed difference alone wouldn't limit them too much). If you are looking at CPUs like Pentium Ds, then yes, they are cheaper, but for good reason. Even just web browsing and such, you can easily feel the difference between any P4 and a Core 2, even a cut-down Pentium Dual-core.
Try to get a Core 2 Duo, or Pentium Dual-core. A Core 2 Duo, with 3MB+ L2 cache, will generally be a little faster than a Pentium Dual-core of similar speed.
If looking at $125+ CPUs, consider ditching that mobo and going to a DDR2-supporting AMD board. It could be cheaper than a more expensive Intel CPU.