All microprocessors come from a silicon wafer, which is a round flat sheet of silicon. Due to the manufacturing processes involved in the production of CPU’s, the CPU’s that are closer to the centre of this wafer usually perform better than those which are situated further from the centre. As a result, you cannot expect to have an exceptional chip every single time, nor can you expect to get the same overclocking results as someone who has the same or a similar rig to yourself. Being lucky enough to get a chip from the centre of the wafer, and it is about luck, is what is known as “Winning the silicon lottery”.
You will need to ensure you have adequate cooling when overclocking as overclocking can cause damage to your CPU, damage which isn't covered by any warranty and since your CPU is more than one year old, it is ineligible for Intel's overclocking warranty. You need a temperature monitoring program such as HW monitor and a stress testing program such as Prime95.
To overclock that CPU all you should change is the multiplier, there are probably many other settings but it's probably best if you don't touch them. Go into you BIOS and find a setting called CPU multiplier or something like that, it may be on the front page of the BIOS or buried somewhere deeper. It may also be called clock ratio, clock multiplier or CPU core ratio. When you find it, increase the multiplier by 1. This will most yield a 100MHz increase provided the bus speed stays stable. Then save and exit the BIOS, go back into windows and open prime95 and HWmonitor. Run the blend test on Prime95 and look at the temperatures of the cores. If they exceed 80-85 degrees I would suggest lowering the multiplier or getting better CPU cooling. After an hour of stress testing in prime95, you can go back into the BIOS and increase the multiplier by 1 again. Keep doing this cycle until prime95 returns errors or your computer bluescreens.
If your computer bluescreens than your CPU isn't getting adequate voltage. So in your BIOS the will be a setting called core voltage. It may also be called Vcore, increase this value by .05 increments then go back and do a prime95 test again. Keep doing all of this until A) you go above the temperatures I mentioned before, B) you reach an overclock you're happy with, 4.2Ghz-4.4Ghz is a fairly decent overclock, or C) the voltage you're setting reaches up 1.3v. You can go as high as 1.5v, but I do not recommend this on Intel CPU's and going any higher will reduce the lifespan and potentially cause damage.
Hope this helped,
-Member of the Intel Response Squad
http://bit.ly/IntelRally