The CPU ends up just taking the FSB speed and increasing it by an internal multiplication factor - so the final speed for the CPU will actually vary depending on the FSB set. Faster you can set the FSB, faster your CPU will run. Inching up the FSB is one of the really easy ways of squeezing a little extra performance out of your CPU. Notice I said inching it up - go a little too far and you end up with an unstable system that may reboot just out of the blue, go a little farther than that and it may not boot at all.
The system I'm on right now is an A7N8X Deluxe board with an AMD 3200+ and 1GB of dual channel PC3200 - all of which run with the FSB at 200 MHz (doubled for the 400 MHz rating you're thinking of).
I'd think about getting PC3200 RAM to go along with the CPU upgrade to get the most out of the new investment. But leaving the PC2700 in shouldn't hurt you too much.
Lots of great help with upgrading and overclocking at two places I know of:
The Overclockers Club:
http://www.overclockersclub.com/
and
The Overclocker's forum at BroadbandReports.com:
http://www.broadbandreports.com/forum/overclocking