Since many E6600's achieve a 50% overclock, (2.4 to 3.6 @ 400 x 9), it would seem probable that as server / workstation class CPU's undergo more stringent fabrication, testing and binning, that a Xeon C2D Conroe 3070 @ 2.667 should most likely be able to achieve 4Ghz, (again, a 50% overclock).
Although I've never owned a Xeon, my former rig was an Opteron 170 @ 2Ghz, which overclocked 50% to 3Ghz, and was an outstanding performer as an affordable FX-62 equivalent. Many AMD enthusiasts agree that the Opty 170 is statistically the highest overclocker of it's series, so just as my new Intel C2D rig, like many others, can overclock 50%, it would appear that 4Ghz could be reached with a Xeon 3070 @ 400 x 10.
At $539.99 from NewEgg, it's quite a bit on the pricey side of the sweet spot, but the lure of C2D performance at 4Ghz has an almost overwhelmingly powerful appeal to those crunch junkies of us with a need for speed.
I'm very interested to hear from anyone who has overclocking experience with these CPU's. Your observations will be much appreciated.