Well, a few years back I did this same thing. I got my 2.4ghz up to 3.2. I almost immediately turned around and bought a new system though. The reason for this was that overclocking did not magically make my computer faster. I was in the same boat as you. I had 4gb of 800mhz ram, clock it to 900mhz... cpu was a E6500 or something (can't remember exact number) and got it from 2.4 to 3.2, no problem. This required me setting the voltage to 1.49 though which is pretty much the maximum anyone should ever put their cpu voltage to.
So what happened? Well, it didn't perform. There was no magical boost in performance. In fact after a couple weeks it started performing slower and crashing. I slowly backed down my overclock and eventually turned it off altogether. If you're just looking for some fun in overclocking there's thousands of good guides online on how to overclock, but EVERY system is different. But if this is for gaming, then I hate to break it to you, your system is just not going to cut it. Not with todays games. And I don't say that as a snob either. I play all my games at high-ultra at like 20fps. I prefer graphics or framerate, but knowing what's in my box is somewhat of a reality check. Games today are demanding. Very demanding.
So, that aside, here's a generic step-by-step
Go to BIOS and turn up you cpu MHZ by 10 or 15.
Reboot, test. (this can be done with lots of different stress test software. Prime95 is popular) Some people test for 30 minutes, other people test overnight... it's a loooong slooooow teeeedious process.
If system doesn't crash:
rinse and repeat
Otherwise:
Go to BIOS
Increase voltage by a SMALL amount. .01 or .02 to start. Baaaaaaby steps. You can pop your cpu and then it's game over.
Reboot, test ....
If you get to your desired clock speed, you're done!
If you get your voltage to 1.5 and haven't reached your desired clock speed, I'd suggest undoing your OC completely or just bring voltage down to 1.4 or 1.45 for a stable, long lasting performance.
Another thing to consider is your CPU:RAM ratio. I forget what it is off the top of my head but you basically get the ratio of the cpu mhz to your ram mhz. A perfect system would be high clock with a 1:1 (meaning they're operating at the same frequency). But commonly this is a 2:1 or 3:1. (I might be backwards... could be 1:2 or 1:3 -- you'll see once you start) The more out of sync you get the worse your system will perform. 1:17 for instance is bad, and will likely negate your OC entirely.
Ok, so there ya go. That's the basics. Use Google. Google everything. Google is your friend. Google RAM timing, Google CPU voltages, Google Northbride and Southbridge overclocking ... gooooooogle. The more you know...
EDIT: I suck at reading and just saw you want 4.0Ghz. Ya, probably not going to happen, but you can try.
Google E7500 OC and see what other people have achieved so you know what you're realistically going to get. Your powersupply is sufficient for that though. Barely, but it'll work.