Core Vcore vs VID

So i'm tryin to overclock my new computer and following the AMD BE overclock guide but im a bit confused on which voltage im supposed to increase in my bios. My specs:
AMD 965 BE c3
Biostar TA890FXE
Corsair xms3 PC12800 4gb 7-8-7-20 at 1.65v 1333mhz (for some reason my comp won't boot at 1600 mhz)
Geforce GTX 260
Coolmaster 750W PSU
Scythe Mugen 2

In my bios i actually have 2 options of increasing my voltage, CPU vcore under overvoltage configurations and CPU VID in my CPU vid/fid configurations. I googled searched cpu vid and it seems like VID is the max voltage my psu will give to my cpu correct? but ive also read that lower VID is better for overclocking, but wouldnt it be better to just increase my cpu VID and just have my cpu vcore set on auto? what is also weird is that my cpu Vcore increases only in increments of .050 Volt and VID only increases by .0125 volts.

According to the guide on this site I should be increasing my multipler first then my vcore, but if i were to increase my vcore even by 2 increments id be at 1.5V. Does anyone know which one i should be increasing, vcore or VID? thanks
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More about core vcore
  1. the lower the VID for overclocking is better because this will mean that the CPU is consuming less voltage this means it will be running cooler, but to get extreme's out of the CPU you may need to bump voltage(s) up
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