Yes you are correct, your Motherboard does support 4GB as shown
HERE
Although the memory can be installed one module at a time, the best performance comes from using matched pairs of modules.
Each memory slot can hold DDR PC3200,DDR PC2700,DDR PC4000 with a maximum of 1GB per slot.*
I have seen when trying to run CL=2.5 and CL=3 caused issues, have you checked this