You probably DO want your mobo to run at 166FSB but this one is not very good at extremely high speeds and you would likely end up with an unstable system. That is why mobo manufacturers put memory dividers into the BIOS - it allows users to make their memory go faster without risking instability with other system components.
If you set your BIOS to 133MHZ then data runs at this speed between the CPU and the memory (quad pumped as noted above). This gives a data transfer rate of 533MHz (133x4)
Your memory would also run at this speed if you left the memory divider on the 1:1 setting. However, as your memory passes data at both the peak and trough of each pulse you effectively get a transfer rate equivalent to twice the speed of the memory - in this case 266MHz (2x133)referred to as DDR266.
By using the 4:5 memory divider you increase the speed of your memory to 166.25MHz(133x(5/4)). As the memory is still transferring data on the rise and fall of each pulse the effective rate is twice this ie. 333MHZ or DDR333.
I also have this board and run my processor at 156FSB which gives me DDR390 using the 4:5 memory divider and the whole system is 100% stable.
Good luck with yours