I have an i7 950 as well and just started OC'ing last week!
I am now at 4.2GHz @ 1.28V (V-Core) with HT, SpeedStep, and LLC enabled and it's stable! I ran OCCT for 1 hour without any errors. More importantly, I played BF: BC2 Vietnam for 2.5 hours with complete stability!
To start OC'ing, just read this guide:
http://www.clunk.org.uk/forums/overclocking/22106-core-i7-overclocking-guide-beginners.html
It is so straightforward and keeps it really simple to OC up to 4.0GHz. Beyond that is where it gets tricky but for air-cooling, like I have, I wouldn't push it much more anyway.
Clunk's guide is for keeping HT on so it is perfect. I am not sure why most people say we have to turn OFF SpeedStep, Turbo, C1E, and other C-States to OC. If someone could explain that it would be great. I mean, does it improve stability? I tried to OC to 4.23GHz (raised BCLK from 200 to 202) and Prime95, LinX, and OCCT ended up with a BSOD. I presume it was something to do with the Voltages, specifically, the CPU Voltage and QPI/DRAM voltage right?
OP, I also ran MemTest86+ for 2 passes and it went smoothly with no errors. I also ran HyperPi (calculates Pi using several cores for multi-core processors) 32M and it passed perfectly as well @ my current OC settings.
You have to be very careful beyond 4.0GHz I think and that is why Clunk's guide is only up to 4.0GHz. Beyond that, you might have to tweak other settings, RAM timings etc. etc. and it could become much harder to pinpoint the exact cause of instability in case of BSODs.
So, since you only want 3.8GHz, just follow Clunk's guide and test for stability with OCCT. It's a 1 hour test and it is really good. Much better than running Prime95 for hours on end; at least, that's what I've read. And, there is no stability test like running the programs and games you use and play. If your system is unstable during work and/or gaming, your system is unstable. Don't be fooled by the hypothetical "stability test" madness that is out there. Many will say your system is unstable unless you can run Prime95 for 24 hours with no errors or LinX or Intel Burn Test for 20 runs at high calculations etc. etc. The bottom line is, you need to be able to run your programs smoothly and use your computer. If you can't do that, turn the OC down a notch or two and rerun them. Just to give you peace of mind, run Prime95 for an hour (Blend) and OCCT.
Here is a pic of my OC: