I only just recently went through a similar situation, and to answer your question, yes if you are happy with a bit of hardware hacking. The MDD G4s had two different motherboard bus speeds - 133MHz (used on the Dual 867MHz and the single 1GHz models). All of the other machines operated with a 166MHz bus speed. Without modification, the processor you have mentioned will not work correctly, as your machine has the slower bus.

If you soldering skills are good, you can modify your logic board to work at the faster bus speed - see http://applefritter.com/content/mac-g4-mdd-fw800-single-processor-upgrad...

There are many threads over at the 68kMLA forums about this, such as http://68kmla.org/forums/viewtopic.php?f=13&t=22285 (this was my thread from a few weeks ago incidentally)