I've been tempted to get a 3.4E and OC it to 4 Ghz. But why spend the money if better dual-core processors will start to appear on the market -- whether AMD or Intel?
Prescotts run on the hot side. That's the "negative" and bad news.
The good news is that they overclock very well.
However, I think the 3.2E and 3.4E may be the only Prescotts with the "loose-jointed" internal frequency multiple feature -- created to allow the processor to slow down when it heats up by shifting to a lower multiple. ASUS mobos can take advantage of this feature, allowing you to "unlock" the processor to the extent of varying the multiple over two successive integer values.
I don't see any reason why you couldn't OC a 2.8E or better by 20% without any problem, but either guarantee yourself high case airflow and good air-cooling (as with a TR XP120) -- or consider water-cooling. Air cooling should be adequate. I don't remember the specifics of OC'ing the Prescott in terms of a practical limit, but you might even get it to a 25% OC, or 3.5 Ghz. Don't quote me, but the general opinion of Prescott over-clockability is pretty good. Since you should be able to OC a Northwood by 20%, you should be able to do as well or better with a Prescott if the cooling is adequate.
I think your SLK heatsink is a ThermalRight copper model? I don't know if it is a heatpipe cooler. Look into other heatpipe coolers and see if you can't compile a list of coolers with their thermal resistance data -- then pick that which has the lowest value.