Concept:
The center of a circle passing through two points must lie on the perpendicular bisector of the segment connecting them.
Step 1: Find the perpendicular bisector of (0,0) and (4,0).
The points lie on the x-axis. The midpoint is \( (2, 0) \). The perpendicular bisector is the vertical line \( x = 2 \).
Step 2: Find the center.
The problem states the center lies on \( y = x \).
Since the center must also be on \( x = 2 \), the center is \( (2, 2) \).
Step 3: Verify radius and form equation.
Radius \( r = \sqrt{8} \), so \( r^2 = 8 \).
Center is \( (2, 2) \).
Equation: \( (x - 2)^2 + (y - 2)^2 = 8 \).