Ok. Well, I wouldn't recommend others trying this one at home simply because it made me nervous putting my box through the fire.
But I did it.
Setup: 2GHz Pentium 4 running Windows XP. Apps running: MSI Temperature Monitor, Prime95, Seti@Home, CPUBurn, WCPUID w/ real-time clock
Experiment: I pulled off the fan plug on the CPU while running the above.
Results: At first the temperature climb was fairly gradual from my typical 48C to 52C and gradually upwards until I hit around 65C or so. Then I stopped. At this point, I was running Seti and Prime95. I downloaded CPUBurn and loaded it up and sure enough, oldfart knows what he says when he says this kicks up the temps. They climbed past the 65-66C plateau and headed up into the 70's. Things started to freeze up but I later discovered that this was an effect of CPUBurn. Around 82-84C, however, the effect was definitely noticeable. I noticed things slow down a lot - from my mouse, to network traffic, to simply closing windows. EVerything started to move like molasses. The CPU speed in WCPUID displayed 2012MHz throughout but it wasn't updating very frequently. It barely budged at all and certainly didn't drop by a substantial amount. On the other hand, I did run a few benchmarks - like the Prime95 benchmark and the results were massively lower than normal. At this point, I declared the experiment done and I put the fan power plug back in. Temps rapidly dropped down to my usual 48C typical temperature under heavy load.
I hope that at least partially answers a few questions. I'd be willing to repeat it one more time if there's something that someone wants me to do (after that you'll need to find another Guinea pig

My computer will have suffered enough).
On the other hand one positive aspect of this is that I discovered that my chipset fan hadn't been plugged in for a long time now. So things are definitely cooler now than before.