Nice to see a new overclocker!
I'll answer your questions first: Yes you can overclock on that rig, and you've got plenty of cooling power. Oh, and just so we can see what your rig has, go to User Control Panel
and click "Add a new rig" and fill out the form to make all your posts contain your PC specs.
So, first thing you'll want to do is download CPU-Z
(If you've got a 64-Bit OS, get the 64-bit version). You'll also need RealTemp
to check temperatures.
Next, go to your BIOS (Mash Delete while your PC is booting) and disable Spread Spectrum (I don't know your board's BIOS so you'll have to find these settings yourself), then head over to your CPU settings and look at the options: FSB frequency, Multiplier, VCore, etc... You'll want to raise the FSB speed to 350MHz, then save the settings and boot into windows.
Once inside windows, start CPU-Z and Realtemp. If you look at the CPU tab on CPU-Z, you'll see that the processor speed has increased to 2625MHz, up from 2500. Now open Prime95 and Realtemp, and run Prime95 in "Large FFT's" for 10 cycles, or until it crashes (More on this later). Be sure to check RealTemp to see how high the temperatures go. For your CPU, You don't want to go over 65c on full load (Running Prime95).
You just overclocked your CPU! Now let's see if it can go further.
Head back into your BIOS and raise the FSB by 20MHz, then save and repeat what we did above, checking for stability and temperatures.
If Prime95 crashes, you have 2 choices: lower the FSB bit by bit until it's stable, or raise the VCore by a notch or two. Raising the VCore sends more voltage through your CPU, increasing stability as well as heat.
If temperatures go over 65c for a long time (Not just for a few seconds at a time), then you can either lower the overclock like before, or get better cooling. This is up to you.
Keep doing this until you can't add any more FSB, and once you've gone as high as you can, it's time for the big test. You'll want to leave Prime95 Running for at least 12 hours, preferably a day, and see if it's stable. If not, try the remedies discussed above.
If it's stable, then you are now the proud owner of an overclocked PC!
-Good luck, and have fun!
EDIT: Wow I type slow. I got ninja's by 22 minutes