While the words CPU and microprocessor are used interchangeably, in the world of personal computers (PC), a microprocessor is actually a silicon chip that contains a CPU. At the heart of all personal computers sits a microprocessor that controls the logic of almost all digital devices, from clock radios to fuel-injection systems for automobiles. The three basic characteristics that differentiate microprocessors are the following:
Instruction set: The set of instructions that the microprocessor can execute.
Bandwidth: The number of bits processed in a single instruction.
Clock speed: Given in megahertz (MHz), the clock speed determines how many instructions per second the processor can execute.
The higher the value, the more powerful the CPU. For example, a 32-bit microprocessor that runs at 50MHz is more powerful than a 16-bit microprocessor that runs at 25MHz.
Most times overclocking will result in a performance boost of 10 percent or less. For example, a computer with an Intel Pentium III processor running at 933MHz could be configured to run at speeds equivalent to a Pentium III 1050MHz processor by increasing the bus speed on the motherboard. Overclocking will not always have the exact same results. Two identical systems being overclocked most likely will not produce the same results. One will usually always overclock better than the other.
To overclock your CPU you must be quite familiar with hardware, and it is always a procedure conducted at your own risk. When overclocking there are some problems and issues you'll have to deal with, such as heat.
Common CPU Overclocking Methods
The most common methods of overclocking your CPU is to either raise the multiplier or raise the FSB (frontside bus) — while not the only options they are the most common. To understand overclocking, you have to understand the basics of CPU speeds. The speed of a CPU is measured in Megahertz (MHz) or Gigahertz (GHz). This represents the number of clock cycles that can be performed per second. The more clock cycles your CPU can do, the faster it processes information.
The formula for processor speed is: frontside bus x multiplier = processor speed.
Source-
http://www.webopedia.com/DidYouKnow/computer_science/2005/overclocking.asp
And if you want to learn some overclocking visit this website-
http://forums.extremeoverclocking.com/
They explain how to overclock cpu,gpu,ram,etc.
Hope you will like my post.:thumbsup