Hiya, let's do this in order

1. Overclocking is only dangerous if you do it WRONG. The only thing that can actually damage components is putting too much voltage through them. Overclocking does require a voltage increase sometimes, but as long as you're careful to not go above a certain voltage, you'll be fine. The worst that can happen is the system won't boot, and a CMOS reset is necessary.
2. The RAM (on a 1:1 divider, more about this in a sec) runs at double your Front Side Bus (FSB) speed. On your PC, the default FSB is 200mhz. It is the FSB that is increased to allow overclocking. However, this means the speed of your RAM is increased too. This faster running RAM performs better, but it can only cope up to a point. This is where the quality of your RAM comes into play: how high a frequency can it run at, and at what timings?
A divider is used for RAM that can't handle the FSB speeds being thrown at it. Say your FSB is overclocked up to 300mhz. This means the RAM is running at 600mhz, but it can't cope. What's called a "333" divider, runs the RAM at a 333:400 ratio. 333/400 = 0.8325. 0.8325 x 300 = 249.75. 249.75 x 2 (its double FSB speed) = 499.5. So on the 333 divider, your RAM will run at 500mhz.
Basically this means that even if your RAM is pants, you can still overclock by sticking a divider on the RAM.
3. The Asus AI NOS Overclocking is pants. Just don't even bother, seriously

4. Google Coolbits for the graphics card Overclocking tool. Otherwise, you should have an option for setting clock speeds in the advanced tab of the display properties dialogue box.
As a side note, the 3700+s are known for being astonishing clockers. Mine runs stable at stock volts and stock cooling at FX-57 speeds - ie. 2.8Ghz up from 2.2Ghz.
Hope that helped a bit!
Jon
