It should work just how you describe. Add the correct amount of voltage and adjust the timings. Set your FSB to 400 and the memory ratio to 1:2. This will give you an OC of 3.6GHz and your ram will be running a 1:1 ratio which is supposed to be ideal.
Depends on your individual chip and load temps. If you're spending that much money on an upgrade, spend another $40 and get a decent HSF like the Xigmatek or OCZ Vendetta 2. Or run stock until you can afford an aftermarket cooler. I've got 2 E8400's in my house, the stock cooler on my son's machine barely keeps up with summer temps upstairs. Heat is the #1 killer of electronic parts.