You will wanna run a 1:1 mem clock/FSB since it's the most efficient, but that faster the memory the more head room you have for stability and overclocking. Faster memory is compatible, just doesn't run as fast as it's capable of running. If you get CL2 PC3500 you can really crank up the timings and still have total stability.
On my current setup I'm running a Bartom 2500+ with (2) 256 MB Kreton PC3500 CL2 DDRs ($92 from New Egg). I have it set at 187 FSB, 1.65v CPU voltage with the memory running 2.6v, 1:1 mem/fsb ratio with the timings set 6-3-2 CL2. I could go faster but I have to increase the voltage on my CPU a little bit to get total stability at anything over 190 fsb and my case is a POS that can't cool the poor Barton...