well technically, 166mhz (333mhz ddr fsb) is all your ram is theoretically supposed to run. you say you've used that ram in another system and gotten higher fsb's, which tells me that it is another piece of your hardware that is holding you back.
i know that the bd7ii doesn't like dual sticks of ram as much as it likes one. so for starters, boot with just one 256mb stick and see how high you can go. if you still can't get over 166mhz, look to other components. any other pieces of hardware that were in the system that you had the pc2700 in previously? if so, you can be pretty sure that those components can handle the stress. so just go down to the bare minimum (cpu, ram, hdd, video) and slowly start adding components back in as you test your fsb...if suddenly you can't get as high of an fsb, you should know what component is holding you back.
one more thing to check. how do you have your cpu/memory ratio set? if it is set at too aggressive of a ratio, that could be holding you back.
so basically, just try and look through your bios to see if there are any settngs you could optomize to get your ram running faster, and definitely make sure that one of your components isn't holding you back. if one ram stick can go sky-high, then i think you should save up some cash and get a single stick of 512 ddr and see how you can do with that
good luck
jeff