That's a possibility. Did you try just raising the multiplier on the CPU? Doing that, and keeping the FSB at 166 will overclock JUST the processor. This way, you're able to see around what clock-speed the CPU can handle, before it starts going bonkers. Or, you could lower the multiplier on the CPU, and see if you still get artifacts at a higher FSB. If so, then it's either the chipset, or the memory. If not, then it's the CPU.
This is all assuming, of course, that your 2500+ has a freely adjustable multiplier.
Hope that helps.