Is that a slot 1 Katmai Pentium III 500 or a FCPGA Coppermine Pentium III 500. It makes a difference. The former does not have very much overclocking potiential and runs hotter. The Coppermine by contrast should give you a 133% overclock. I have the FCPGA Coppermine PIII 550E for example and I could easily get 733 mhz out of it... probably more. The Katmai won't give you much at all.
To over clock, don't mess with the CMOS values, but yes, in the BIOS you can change your Front Side Bus (FSB) speed from 100 to 133 mhz and that will force your CPU from 500 to 666 mhz. That is of course assuming you have a Coppermine type. If it is the Katmai, you will need to find the settings in your BIOS which allow smaller increments and creep up the FSB a little at a time to see what it will handle and be stable.