seems kinda fishy - my new duron 700 chip only needed 1.6 volts in order for it to run stable.
did you buy the chip as a part of a complete system? if you didn't, plop it into your motherboard and set the cpu speed in the bios to auto-detect. if it comes up at a lower rated speed - then yes, you got crossed.
next step would be to take the chip out and examine the L1 bridges to see if it's been connected (either with pencil, conductive paint, or in any obviously "not put there to begin with" way.
last thing could be that you got a bum chip
