Need help with an Intel overclock

Here is my setup (different than sig rig):
C2D E4300 Conroe Stock 1.8ghz
Gskill DDR2 2X1gb Timings CL: 5 tRCD: 8 tRP: 8 tRAS: 20 CR 2T
Gigabyte 965P-DS3
Aspire ATX 520w PSU 18A dual 12v rail.

Now that I have that out of the way, here is the problem. I can easily boot straight from a 200mhz (stock) FSB to a 255mhz FSB. However, anything after that and it simply does not post. At 255mhz it is completely stable and everything but it just won't boot after 255. The strange thing is, when I use the C.I.A. 2 function (automatically overclockes, despite the current overclock, CPU when needed) and have it on Turbo it will overclock it well over the 255mhz mark and it is stable. So why can't I get past 255?

I've tried taking the multi down from 9x to 8 and trying to boot over 255 and it still doesn't work. I would assume, given those results, it is not the ram. So I think I've narrowed it down to the PSU, the CPU, or the board.

Any help is greatly appreciated.

EDIT: Something important I should have stated earlier: When I try to go over 255mhz FSB it will restart like normal and even give me the "beep" but then the screen goes blank. After a probably 15 seconds it reboots and does the same thing over and over.