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I have the D975xbx with an early revision 3.02 and had been using the earliest bios which should have been 354. I have been using an ATI HD3650 for awhile now with no problems. The website says it is PCIe 2.0x16. Now whether the card is fully utilized i do not know. But I have used a Sapphire ATI HD3650 512mb card with no problems as well as a Gigabyte ATI HD4650 1GB with no problems.
My computer also posted with a GeForce 8300 GS in the PCI express slot. But i don't know the specifications for that video card as i just pulled it from a dell computer to try and diagnose a different problem.
Hope that helps.
So as far as compatability, you should be fine using a PCIe 2.0x16 video card.
thanks! thats really helps, I will buy my new card soon :-) in the case that it won't work, I will post it here!