OK, I got the new PSU in there in conjunction with my 300 watt. Here is the setup:
250 watt PSU w/ P4 connector: Powering the motherboard ONLY. Using the P4 12v connector, ATX connector, and 1 molex connector.
Antec 300 watt PSU: Powering everything else (7 fans + PSU fan, 2 HD's, 1 DVD-ROM, 1 ZIP250, 1 floppy)
The results...
The 250 watt PSU running the motherboard/CPU is at 11.37v on the +12v rail at idle with the core at 1.75v, and theother rails do not show any impact.
The 300 watt PSU seems much more stable now, as the fans are running at full speed and not fluctuating under load anymore as they did previously, although I do not have any voltage readings for you.
I tried pushing to 160Mhz FSB at 1.7v on the core and it boots fine, but I get a bluescreen after about 10 minutes of Prime95. At 166Mhz FSB Windows will not boot and bluescreens right before displaying the Windows XP login screen.
My conclusion is the new power supply helped with the stability of the 12v rail to the motherboard as it does not seem to fluctuate as much as it did before and also the fans obviously no longer spin down when the system is under load. The only thing I see here is that the 12v rail to the motherboard is still kina low--around 11.4v idle--although I'm not sure if this would matter anymore when using two power supply's, but I'd like to see how others see this and maybe get some suggestions and opinions.
At any rate, I now have 550 watts of power in this system