You need to set the CPU Host Frequency to 333, that will put you back to stock settings for your processor.
Then change the memory mulitplier to something other than AUTO. As it is your memory is running at 960mhz.
You need to do some research before you attempt anything. What you are asking doesn't match at all with your bios pic. In that pic, your RAM is rated for 800MHz and is currently running at 480MHz (not 667). Your FSB (CPU host frequency) is set to 200 (not 333) with a multiplier of 7 which gives your processor a speed of 1.4GHz (7*200)
I'm far from being an established overclocker but even I know that you are a long way from where you want to be. Try reading the sticky written by Graysky at the top of this forum and then google/wiki all the things you don't understand and then google looking for threads that may pertain to your CPU and mobo. It helped me to write down the circuit diagram of a computer (found it on wiki I think) and make notes on what does what and why and how.
If this seems a bit boring then OC'ing is probably not for you because IMHO if you know the reasons why then it helps you work out how. I'm not being harsh, really I'm not and there are some very intelligent, skilled people who can help you out on this forum (and others) but they can't tell you EXACTLY how to OC your system.
In summary, read, read and read some more, get a good grounding in what you want to do and THEN ask, others will respect you for it.
Good luck (begin with guide to overclocking at top of forum)
Three stickies (permanent posts at the top of the forums) that you need to read:
1. Overclocking C2D's and C2Q's.
2. Overclocking Gigabyte motherboards.
3. Computronix's sticky on thermal management and CPU voltage.
Caution. The last one is pretty technical, but you need to know something about thermal management if you are going to overclock.
Here is a very simplified method for overclocking:
1. Set the ram multiplier as low as you can, to ensure that you don't run into a ram limitation. Once you have found your FSB for your overclock, adjust the ram multiplier to something that suits your ram and gets you as close as you can be to its rated speed. If you exceed the rated speed of your ram, you will probably have to give it a little more voltage to get it stable, unless you have high quality ram. I wouldn't exceed 2.0v on the ram. Run Memtest86+ to see if its stable.
2. leave the CPU multiplier at its highest, as you are pretty limited as it is. I am not sure how that specific chip overclocks, but you most likely wont get much more than 3ghz out of it as its already at a FSB 1333 and runs at 2.33ghz.
3. Raise the FSB in increments of 5, and boot. If the system boots, shut down and raise the FSB. Do this until you cannot boot into windows. Once it BSOD's, or just doesn't boot into windows, you will have to raise the CPU vcore (go small, like .00625-.0125v increments; if you bios has a drop menu, just select the next highest voltage) and then try rebooting again. Go to the intel website and find your processor, and specifically what voltages it can take, and don't exceed those voltages (you can a little, but I wouldn't recommend it). Once you cannot boot into windows using the highest allowed voltage, I would say that is your limit. back the FSB back a couple notches until you can boot into Windows and pass prime95 stress test for at least 8 hours. If your PC doesn't pass, then either back the FSB down a bit, or raise the voltage a hair until you are stable.
It is very likely that your motherboard will be the limiting factor here, as the P35 chipset isn't the greatest for overclocking. Your board is rated for up to a 1333FSB, which would be the stock speed for that chip. Don't expect to get too much out of it. It is possible that if you increase the FSB voltage you will be able to squeeze more out of it, but this is hard on the MB and can cause it to burn out, so don't go crazy there.
Make sure you have good cooling, and do not let your chip exceed 70C in prime95. If it does, then you need to back off your overclock a little, or you will burn out your chip. Overclocking usually takes me a couple days, so be patient. If you don't have that kind of patience, then don't try it because you will probably try to cut corners and damage something. Use Realtemp or Speedfan to monitor your temperatures.