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Assuming you have a power supply that can properly handle your system and adequate cooling, there is a high likihood that you could hit 3.2 GHz with that system. Both of those items are critical, however, so if you're not sure that they're sufficient, be sure to ask.
E6700s are stock 2.66 GHz CPUs that run natively at 266x10 (external clock speed by the multiplier). To get to you're goal, you'll need to bump the clock to 320 MHz. Your RAM runs natively at 333 MHz, so it will have no problem at all 320 MHz.
The best way to overlock is to do it gradually. Experienced overclockers can take larger steps when testing out new gear, particularly C2Ds that often OC very well, though less experience overclockers should move in small steps. In the BIOS, up the frequency in 5-10 MHz steps, boot to Windows, and test stability. When the system become unstable, up the CPU voltage (vcore) one notch, boot to Windows, and test stability again. Repeat this process until you reach your goal.
Your best bet to start is to set your RAM at 1:1 (may be expressed in a variety of ways in the BIOS - explicitely as a ratio, though more likely as a DDR value, which would be DDR533 for your system at stock speeds). That way, the RAM will never be above stock speeds while you're reaching for your goal, so it should be out of the equation for stability testing. Be sure to set your RAM timings manually instead of using the standard "By SPD" as many boards and DIMMs do not communicate timings well.
You should also set your PCI bus to 33 MHz and your PCIe frequency to 100 MHz and disable Spread Spectrum.
Give those suggestions a try, and then check back in. Be sure to post exactly what steps you took so we can give you specific suggestions.