n7,
it is usually a combination of motherboard and processor, but an E0 stepping cpu should not take 1.4V to take to 4 ghz. I have a C0 qx9650 that is stable with 1.37V, and I had a C1 Q9550 around for a while, that was stable at 3.4 ghz with 1.12V (OP says he needs 1.35V for 3.6 ghz!! wtfff). I really dont see how an E0 chip could be worse, from everything I have seen they are far better.
But the motherboard plays a big factor, especially when you disable vdroop, either by bios or by modding. you have to understand that once you disable vdroop, your VREG is 100% responsible for providing the most stable power possible. if you read the intel spec sheets, you will see that the Core 2 family is resiliant to voltage downshoot and overshoot, but only by 0.050V max, and 20 microsecond duration. You can push this envelope, but it could cause instability, so if your mosfets are shitty even with high voltages you will obtain shitty overclocks. You would need an oscilloscope to measure voltage under and overshoot magnitude and duration, under idle to load and load to idle state changes. You can however estimate at least magnitude by looking at how much your voltage drops under load with vdroop enabled. You also need to remember this magnitude is proportional with the amount of amps that go through the mosfets.
jjrowley,
VID is the voltage specified by intel that the CPU needs to run stable at stock voltage. So intel coded the cpu to request the bios for 1.25V at stock.
playing around with your cpu will not damage it. believe me, degradation, shortening life span, its all BS and placebo effect. what wears out is the other components, like the resistors, the mosfets, the capacitors. those wear out because when you overclock you are sending more amps through them than they are rated for.