Here's how I understand CPU Termination (obviously, if I'm off here somebody correct me). I gleaned this through a billion threads of semi-conflicting information and some really techie stuff that, quite frankly, gave me a headache reading.
As you climb in FSB speeds you introduce "noise" into the signal between the FSB and the CPU. If you increase the CPU voltage or the NB voltage you can overcome this to a certain extent. Increasing the CPU Termination (also called FSB Termination or Vtt depending on the mobo, or the forum, or the poster, or the reviewer...) increases the voltage of the "signal" between the CPU and FSB. In theory, this is will allow you to either reach higher FSBs with the same CPU and NB voltages *OR* more importantly, reach the FSB you want at lower CPU and NB voltages.
The general consensus is for 45nm quads you shouldn't go over 1.4v here or your CPU will explode (or something). This is important in particular if you have it set on auto at high FSB speeds as auto apparently cranks this value up. I don't know what the limit is for 65nm quads or 45/65nm duals. I have also seen some places where people have said the 1.4v limit is rubbish so take it with a grain of salt, but for my purposes I've seen it mentioned often enough where I'm trying to stay as far away from it as possible (currently at 1.3v).
I have no idea what the reference values do (either CPU, NB, or SB reference). I think that's above my pay grade...