EDIT: lol it looks like I took to long to write this...
Before you do any of this... you need to have a good cooler for your CPU. Do Not Attempt if you do not have sufficient cooling.
Ok I'll try to simplify it a bit for you.
Is it worth it?
Yes and no. The extra speed boost is not all that necessary but it does speed up your system nicely. I think that a moderate OC is well worth it. Games are getting more demanding and it is nice to have that extra power for free

. There are risks involved but if you follow the steps and do not go too high too fast or let the voltages/temps get out of hand, your processor will be obsolete before it dies from OCing.
So what are the numbers and how do they work?
There are 2 numbers that you need to pay attention to when adjusting the clock speed of your CPU is the core clock or FSB and the multiplier. The product of these two numbers will give you your clock speed.
So for an example the formula goes like this...
Core clock/FSB X Multiplier = clock speed
So for the AMD Phenom II 955 that I am running in my system the default clock is
200 X 16 = 3200MHz or 3.2GHz
Overclocking is the process of raising the numbers to achieve a higher clock speed. There are 3 ways that this is done.
1. Raising the multiplier (if it is unlocked)
2. Raising the FSB/Core Clock
3. a bit of both
just so you can see how this works here are a few examples...
Lets say I wanted 3.8GHz out of my 955
OC with the multiplier only:
200 X 19 = 3.8GHz
OC with FSB/ Core Clock only:
238 X 16 = 3.8GHz
A bit of both:
224 X 17 = 3.8GHz
So as you can see, the target speed of 3.8GHz can be achieved in different ways. The method that you take will depend on your processor. The 2500K that you have has an unlocked multiplier. That is the easiest way to OC that processor. I would not touch Core Clock for that CPU until you better know what you are doing. Raising the core clock will change some other settings as well. AFAIK it changes RAM speed and the speed of your expansion busses. (PCI Express for sure but I think that PCI might not be effected

I probably have that wrong)
Checking for stability:
every time you change the settings for you OC boot to windows and check for stability. Most of us use Prime 95 here. That is probably the best one that I know of to push your CPU to it's limits. Prime 95 will find errors fairly fast so I would test for 10 min every time you boot to windows. If it passes then try to go higher. If not, you most likely need more voltage.
When you OC your CPU to higher clock speeds, you will need more voltage to keep the processor stable. Before you start overclocking you need to set the voltage to the stock voltage NOT Auto! Auto will use more voltage than is necessary. more voltage --> more heat --> less room to OC. When you need to bump the voltage up do so in the smallest increments that are allowed by your motherboard. Then check again for stability.
While testing for stability, have a temperature monitor running. To ensure that you are not going to damage your CPU you need to be sure that your CPU is not overheating. Check for the max temps of your CPU. and stay under them at all times! Google around to see what the max safe temps are for a 24/7 OC on the 2500K. I think it is around 60c?
Remember: Voltage and heat can kill CPUs. Do not use more voltage than you need!
When you have reached your final clock speed stress test it again for a longer duration. 3-4 hours will be enough. Again keep an eye on your temps. If every thing checks out, then you should be good to go.
P.S. I realize I wrote an unnecessary amount
P.P.S. I'll get to the GPU side of things when I have more time. Unless someone gets to it before I do.