The 805D are reject cores so your success will largely depend on luck. The 3.4GHz overclock that you have now is fairly average so you can certainly improve on that. Many 805Ds can get to 3.7GHz or Extreme Edition speeds pretty reliably so with the Zalman CNPS7700 you should be able to reach your 3.8GHz goal. I'm fairly certain that your chip won't reach 4 GHz though since with your multiplier locked at 20x you'll be running at a 800MHz FSB. If your chip could do that, then there should be no reason Intel would reject it unless the defect was in the EIST support or they simply missed it.
I'd suggest you just stay with the 805D and the Zalman cooler since there is no reason to spend the money to get a Cedar Mill. Once overclocked, the 805D will offer better performance than the Cedar Mills, even in single-threaded applications.