It's worth it, but only if you are going to OC. You'll get hardly any difference otherwise. If You're concerned about blowing the barton up, you could consider a T-bred 'B' 1700+ or 1800+ - they're great chips (bang for buck-wise) for overclocking, but the barton will probably give you a faster end result, and would perform slightly better at the same speed, due to the extra L2 cache.
So go for it if you want to fiddle - You've got all the other ingredients (good Ram, good Nforce2 mobo) and whatever HSF you were using to cool the pally will be fine for a barton, even if Oc'ed.. (WAY cooler than palamino)
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$hit Happens. I just wish it would happen to someone else for a change.