The Intel GMA onboard video is FAR better than the Geforce 2, with one minor exception: RAM. The Geforce 2 has built in RAM designated specifically for Video, so if your computer is low on RAM, you will definately experience smoother (though far inferior) video to put in the Geforce 2 (or, alternatively, you could purchase more RAM).
If you're looking for a good graphic chipset, though, you'll need to get something more advanced than either. I'd get a nice nVidia GeForce 5200 - 7300 (any in that area are good, and still affordable, also, they don't require DirectX 10, so you won't have to move up to Vista).