The speed at which PC2700 will overclock depends greatly on the manufacturer and quality of the RAM. Some of the higher quality RAM like Crucial, Muskin, etc. will run at PC3200 speeds, but you'll probably have to use conservative RAM timings and bump the voltage up higher than the default 2.5v.
If you've already got some PC2700, you might try and see how far you go with it. However, if you are buying the RAM new or plan on going higher than 200 FSB, go with the PC3200.
My Muskin Basic PC2700 is currently running at 183 FSB on 2.7v. I am sure it can go further, as my 8RDA board is what's holding me back.