I am not the be all and end all of computer techs, but here is my explanation:
The K7 family of AMD chips, i.e. Duron and Thunderbird, use a DDR bus. Basically, this takes the bus of your motherboard and doubles it. The Duron should be able to do a 200 MHz effective bus, which is 100 MHz on the board. The Tbird should be able to do a 266 MHz effective bus, which is 133 MHz on the board. By trying to run the Duron with the FSB set to 133 MHz, you are trying to actually run the chip using a 266 MHz (2 x 133) bus. That could be why it will not work at that speed.
I have heard of some Durons that will post and even run quite nicely with the mobo set to the 133 MHz setting. Not all will, though, so you may just have to stick with the bus and multiplier combo you have right now. As always, you can try upping the vcore voltage as the Duron should work just fine up to 1.85v. Make sure you have good cooling for that, though.
Good luck, and I hope that this helps (I also hope I am not toofar off in my explanation. If I am, someone please provide correction, but in a nice way. Thanks.