There are pros and cons to both but if you are not familiar with overclocking I would suggest buying the clock speed you want.
If you are willing to risk the potential loss of the chip and/or motherboard and don't mind spending some extra on a good fan overclocking can be a cheaper way to get...
I currently use Corsair Core i7 Dominator 6GB PC15000 DDR3 RAM in a similar config. It really depends on you budget and personal preference I have never had any problems with Corsair memory. If you are looking for something a little less expensive I would recommend this Core i7 Dominator 6GB...
Short answer is yes it most likely can be used for an OS as long as your bios will allow it but in all likely hood it is going to be much much slower than a true SSD. I currently use a usb2 stick for ubuntu and it is nice but slow at times.
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