Good to see the cpu you have is at 266! (or 262 exactly)
You should be able to run at a 83mhz fsb, but it all depends on the components you use. Your video card is probably what you run into problems with. Please list your system components and maybe we can weed out any bad ones. Your cpu should be okay, as I've seen many of the 233mmx cpu's running at 300+ on super 7 motherboards.
On a note upgrading to a amd k6-2, I can't find out if your motherboard will support the 2.2v core for a 400, 450, or 500. You can dig a little deeper on the m-tech website. (I checked and I think that's your motherboard manufacturer)
A k6-2 would run at a 6x multiplier when you set it to the 2x specified on the motherboard. Thus, 66x6=400, 75x6=450, 83x6=500. If in the end your board won't supply the 2.2v core these cpu's require, there are a couple of companies that make a socket 5/7 voltage regulator adaptor that would change the core voltage to 2.2v for the k6-2 cpu. Concept Technologies is one of them, but I think they went under, as I can't find them anymore. I use several of the voltage adaptors they have and they work beautifully. I know powerleap makes the adaptor too, but I can't find any pricing on them. The good thing is the adaptor just sits on your socket 7 and then you plug the cpu into the adaptor. You may have to flash to a different bios for it to work, but it's relatively painless.
For now, try to weed out your conponents one by one to see which will not work at the 83mhz fsb. If you can run at 292mhz for another 6 to 9 months, you should be able to pick up a 450mhz k6-2 at that time from someone's upgraded system for nothing.
If your video card is the culprit, try going with anything from the NVidia line. I've found all of thier cards are stable at 83mhz fsb.
Blaine