I concur that the 700 is not overclock friendly. The 10.5x multiplier is just too high to work with. The 667, 733, 766 have the same problem...high multi. The 800/100 and up seem to be much better, from what I've read thus far.
We have a member here, kid by the name of Carmine Paterno....used to run a C700. Poor kid wanted 1GHz out of that chip, and went to great lengths to get it. How's 2.4 volts to the cpu sound? Insane, IMHO. I DO NOT reccommend anything over 1.8 without a HSF upgrade, and 2.05 max.
He never did get 1GHz out of that chip, either. I haven't seen him post in quite a while.... I think he went AMD, and is posting over in the AMD topics these days.....
Personally, I'd sell the 700, and either step up to the 800, or back to the 600. Both have a reputation for overclocking quite well.
A fair amount of the 600's will hit 1GHz, most 900MHz. (I got mine to 1053MHz (1.05GHz)). I've been seeing a LOT of posts about the C800, and a lot of these will make it to 1066, some much further...
Batboy has a very good point, cooling IS essential. If you've got the intel HSF on that C700, you likely won't get too much stable. Definitely don't go raising the vcore thru the roof without good cooling.
I still think it might be the chip itself.... that one's got a bit of a "rep" for lousy o/c's.
My $.02