Are you using an adjustable voltage board? The voltage mod I recommended to others has been to raise the default voltage to 1.65v so that the adjustments go higher. If your board does not support voltage adjustment, you may need even more. You may also be having a problem with memory or bus speeds. The PIII 667 is a 133FSB bus processor. 150 is fairly easy with good parts and will take you to 750. After that, your parts really start to take the stress. Most Coppermine processors will do 750 at about 1.7v. If your using the Celeron 667, you would need to up the bus speed to 100 to get the PCI and AGP busses to drop back down. This setting is too high for most processors, and requires 1.90-1.95v in most cases when it does work, sometimes as much as 2.05v, and in many cases it won't run at all. Most Coppermine Celerons will go to about 900-950 if they are properly cooled and the rest of the system can take it. For the averager user, this means voltage detection pin modifications that will allow voltage adjustments to about 1.85v, and a 600 or 633 set at 100MHz FSB.
Then there is aways the possibility, as you said, that it's a dud. A few percent of the processors will overclock at all.
Suicide is painless...........