I need to know how to overclock, I don't want to damage anything or get extreme performance, just want to get the most out of my computer without screwing anything up. I have never overclocked before, so please explain in complete detail...
If your main use is gaming, you don't really need to OC (and won't for a long time), but if you're just interested in trying it anyway, just start at stock voltage (manually) and raise the multiplier until you see a BSOD. When/if that happens raise the voltage incrementally until the BSOD's stop.
Just be aware that 4.5 is likely all you'll be able to get to for temp reasons (maybe less that that).
I'd do a little. I don't think 3.4 is really enough to support a 7850. Try just setting the multiplier (it should be one of the easiest-to-find settings in the BIOS) to 40x, which will give you, I believe, 4.0ghz. Then run Prime95 and see what kind of temperatures you get.
You're supposed to disable SpeedStep and the C states, but I never have with my own OC's and haven't ever had any problems or instability. Nevertheless, it's recommended for a reason because it apparently DOES cause problems for some. Beyond that, you're good to go.
You're probably right about the OC.
If you don't push the voltage, nothing will go wrong. If you've installed the cooler completely incorrectly and you get crazy temps, the machine will just stop before it burns itself.
I actually don't know that for Ivy CPU's, but from what I've seen, you'll hit a temperature wall at stock voltage without GREAT cooling, so you shouldn't even need to worry about max voltage. I'd set the limit at 1.300V though, if I had to guess, but you'll never get to that without epic cooling.