QUOTE(quadomatic @ Sep 7 2007, 01:10 PM)

Is there a good reason to overclock? Won't that damage it?
Is the MK1 worse in any way, and if you had to choose between MK1 and MK2, which would you pick?
Where can I get an MK1 cheap?
People overclock because they want to run demanding software. This generally means emulators for MAME or PSX or Amiga or SNES, etc.
Whilst many emulators will work fine at the standard 200Mhz, some fall under the "the faster the better" adage.
It's common for people to overclock to 240Mhz as most GP2X will do this no problem. Others will find that they can do up to 320Mhz - which is about the highest I've heard of.
Overclocking will not damage your GP2X. It simply will just lock up. Switching it off and on will fix this as it will restart at it's default 200Mhz speed again.
The Mk1 is considered worse because of the joystick, screen and some other reasons. The Mk1 joystick has a diagonal bias - meaning it's often easier to achieve diagonal movement rather than standard up/down, left/right. The Mk1 screen also seems to suffer from interlacing effect on the screen - meaning there seems to be some flicker associated with it.
On the flip side the Mk2 screen is considered to be superior due to better color saturation and contrast although it does have a smaller viewing angle - though application of gamma correction seems to fix this viewing angle problem to a degree.
If you want a GP2X, I'd be waiting for the new Mk3 which has the dpad and touchscreen. Though that means 1-2 months without a GP2X. Considering I use mine almost every day that would be... difficult, at best! So I would understand why you'd want to get one ASAP!