When your computer starts up, the CPU says to the motherboard, I'm a 200/266/333MHz FSB CPU. The motherboard has bootstrap settings to make a CPU run stably at those speeds, and that's what the FSB Strap to Northbridge sets up for you.
It loosens internal timings and increases voltages, so the higher you go, the hotter and slower the system runs. That's why sometimes a massively overclocked PC can feel sluggish. You have the processing power, and the benchies to prove it, but the user experience is often quite poor. Hence it is almost always better to run at the top end of a lower strap setting than the bottom of a higher strap setting.