I have a similar system:
AMD Athlon-c 1.2GHz
Iwill KK266
Crucial 256MB PC133 CAS2
Maxtor 20Gig hard drive
I have it overclocked like so:
RAM: 161MHz, CAS3
CPU: 1.36Ghz
VIO voltage: +5%
I haven't had any data loss or corruption, no crashes during games. The first motherboard was crappy (the secondary IDE connectors weren't working), but after I got it replaced all was well. I compile a lot of programs under linux (which is quite memory, cpu, and disk intensive, kernel compilations as well), and I haven't had any problems that can be attributed to the hardware of my system. I am going to try for a higher bus speed soon.
I have run numerous tests to check the stability of my system, because I couldn't stand it when my friends thought my K6-300 comp was crappy since it crashed (seemed to only crash when they were there for some reason) all the time because i overclocked it to 448Mhz. Ever since i've been really particular about my system being stable. I've used Prime95, RC5, CounterStrike, 3dmark2001, SuperPi, Video capture from my TV TUner card, video playback while running the cpu at 100% with Prime95 (this helped me find out that my mem was unstable, had to lower VIO voltage from +10%). Hope this helps you.
EDIT: Added VIO voltage of stable overclock for clarification