"Is that the 1606 or the 1607 bios that lets you do this??"
Actually, I think both do. The 1606 is the latest "official" bios from Epox, while the 1607 is still "beta". Also, even without the latest bios, the Palamino will still work, it's just not recognized properly.
"And is there any reason for us to flash if we are not getting the new CPU??"
Well, the newer 1607 bios adds FSB settings all the way up to 250mhz now. :Q