Ok so you have read the Basic over clocking thread and are not into the risk that comes with over clocking.

My question is: If you are using a non stock heatsink and fan wont the reduction in heat increase performance anyway I mean I know that it still wont be as fast as O.C but given the risks and lack of available funds for a new system performance might be the way to go

Nope not much. Not unless your comp is REALLY overheating. it's not enough to really matter. Besides, their expensive and are really only for if you overclock.

Well, you're right in deducing that reducing your temps will cause an increased performance, but you forget that the speed of your CPU is still locked. But even then, there will be some minuscule, undetectable, speed difference.

If you're looking for performance increase to match a new system, overclocking is the only way to go. Even then, your performance increase from overclocking will only play catch up by about 1 year. Even then, we're talking pretty mid-end PCs. You can't expect a 3 year old PC to perform anywhere close to a brand new PC. I think this was covered in the Basic overclocking thread.