DDR is technically Double Date Rate SDRAM, I believe he just got the term mixed up. There are no Intel chipsets that I'm aware of that have an 800Mhz bus using PC133 RAM. It ain't gonna happen.
Mahler, you should remove the old RAM. The Intel 865/875 chipset will run at 400, 533, and 800 MHz. If the RAM that came with the system is a POS, then you're probably not running at full bus speed. As far as your system bus goes, you're limited by the lowest common denominator. So your spanking fast PC3200 will probably be stuck at a lowly PC2700.
Anyways, with a gig of RAM, another 256MB is not going to make a noticeable difference.
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