Yes, with a nice cooling and a good motherboard it can reach 3.5 which I don't think is the case here but it will be fine for a decent OC. A really good cooler is Thermalright Ultra-120 with a Noctua fan but is not cheap.
I reached 3.125 REALLY EZ on a friend build with an Asus P5GCMX that is a really tiny MOBO with Intel 945GC / ICH7. I just raised the FSB, everything on AUTO ... PRIME stable ... dilivered it to my freind and running for 6 month no fail.
For mid range coolers: list High end coolers: list
Where's the Zalman 9900? It's the highest performing air cooler you can buy.