1. Generally, no. Unless your applications are really bandwidth limited, it's a waste of money.
2. It means you can only use 2xPC2-8500 DIMMs. It's not limited to your motherboard.
3. I don't have the board myself, but 2 DIMMs should work fine.
4. Because the semi-conductor companies overproduced in 2008, so last year they slashed production since DDR2 is now depreciated. They're supposibly increasing production somewhat this year which should bring the price down a bit, but it's most likely that DDR3 chips will come down in price just as much, or more than DDR2.

Further, you don't *need* 4GB to take advantage of 64bit, the additional registers may increase performance of your applications even if you only use about 1GB on average. But it wouldn't hurt to have the extra RAM either.

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