With respect to the speed of the ram (667 or 800), it is dependant on the motherboards memory bus capabilities not the rams capability to run faster, hence the backward compatibility, when an 800MHz ram module can clock down to 667MHz and run properly. To try and run this particular ram at 800MHz isn't overclocking the ram, it is overclocking the motherboard memory bus.
Your statement-->"by using the motherboard BIOS settings for memory, could the User obtain 800MHz speed
& the memory would not be stressed or not an OC, since it is already capable of default 800MHz speeds."
cannot be answered in total without giving us the motherboard model, there may be intricacies in the MB BIOS that could allow this but, you posted in your question ,
"a MOBO which only recognizes DDR2 667MHz RAM"
so we assume that any ram setting over 667MHz is overclocking the motherboard memory bus and instability can be a problem.
It may be more prudent to tell a customer that the ram is certified to 800Mhz and will run very stable at the motherboards 667MHz limit.