There's an easy solution to this one. Go into bios and disable Cool N Quiet. If you can find it in bios, also disable C1E. Then go into Windows Control Panel Power Options and configure it to High Performance. Your CPU is being down-throttled at idle by energy saving advanced power state technologies. They should not effect it's performance under load, however.
Sure it can overheat. If you add too much voltage or have a case that cannot get rid of the heat from the cpu cooler. But generally they do overclock well without generating a great amount of heat.
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