It may.. but it's not just down to the chip really. The whole mobo is an aging platform and as you already know, your pc is as strong as the weakest link.
You can get some pretty cheap upgrades out there.. I remember a really good article from TomsHardware site, lol I found it, check this out:
Extreme Overclocking Potential – Intel’s Pentium Dual-Core E2140 : Ultimate Budget Overclocking Box - A 3.5 GHz Core 2 System with a €49 CPU
This is a budget system that gets you to 3.5GHz! It's a great read if nothing else..

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AMD X2 BLACK EDITION 3.2GHz SAMURAI COOLER::GA-MA790X-DS4 MOBO WITH NOCTUA NC-U6 HEATPIPE COOLING::3GB XMS2 PC6400 RAM:: POWERCOLOR 4870 512MB GDDR5 RAM::160GB BARRACUDA RAID 0::SOUNDBLASTER AUDIGY::SAMSUNG WRITEMASTER DVD-RW/PIONEER DVD::HIPER MODULAR 530W PSU::THERMALTAKE ARMOUR Jr CASE::RAZER COPPERHEAD MOUSE::VISTA HOME PREMIUM SP1