Sadly it looks like Shuttle don't intend to push out a BIOS update to allow use of AM3 processors with your motherboard (even though it's technically possible), so I'd try overclocking first, as upgrading the processor won't get you a more efficient architecture, just the same chip higher clocked (with perhaps a smidge more cache). If overclocking isn't possible on your motherboard or you can't get a stable overclock, then you can still upgrade the CPU and you've not wasted anything other than an evening or two
<snipped after reading manual>
EDIT: OK, having read the manual from the page you linked, it implies that you can't change the reference clock, but you can change the mutliplier (it's in the Advanced > CPU Features menu). So basically just tweak that up by 0.5 at a time then check the stability & temperatures of your computer (each 0.5 will boost your clock speed 100MHz).