There is a newer bios for this machine: http://ftp.gigabyte.com.tw/support/temp/beta/5aa_i_f7b.zip . It is an ALI chipset, which in its day was nifty because it could accept so many different kinds of chips. I am not familiar with AMD chip you are referring to. The board ought to accept a K2 or even a K3. Having said this, you will need serious heatsink/fan help because those chips need the higher voltage and that means pretty high temps. You might also look at your box. If it is too small, remove the sides. Heat is going to be a problem.

Should you keep fooling with it or graduate to a newer machine? Both. Get a newer machine. This board is at the end of its cycle. A new machine will probably give you the speed and stability for your most important endeavors. But, you can never learn as much as taking this board and working through the intricacies of getting it to perform.