RE:"I've heard that it is used to test for early failures (even among cpus running at their rated speeds), as components will tend to fail either early on or late in their life. Stressing your system to the max right after it is built would expose any weak components, allowing an OEM to replace the part before shipping the PC out. Can anyone confirm or deny this?"
That's a system burn in. Typically, after building the system the builder will run the system for a set period of time, say 24 hours to see if it's stable. Some will run a series of tests, usually something they have put together on a CD, to test functionality.
Then he will ship it out.
Typically, components will fail within the first fews days to a month of use. After that the computer is less likely to fail for some time.
Burning in a CPU is typically an overclockers term. Likely has more to do with the flowing of the Heat sink compound as was previously stated.
What happened to perpetuate this idea was that someone would build a computer and it would fail to overclock. Then the person would kick back the overclock and run it a while. Then later, when they kicked it back up to the original overclock it would be stable. They thought this was due to some internal change or "burning in" of the chip itself.
Mac