After an intense session last night of stressing my CPU with all sorts of editing/recording software, I went off to bed, only to be awaken by the error message the next morning of "Overclocking failed" (or something along those lines) on boot.
I went into the BOIS to reset to the factory settings, and to no avail it froze instantly.
I turned off my PC and decided to clear the CMOS using the jumper on the board, this worked well and I booted the PC, but as soon as I connected my second monitor (while it was turned on) the video went CRAZY and I BSOD'd

With a PC upgrade in mind, I am left with the question...
Is this a Motherboard fault or a CPU fault?
Seems I only have the money to upgrade one of them, which should it be?

budget?

mentioning current mobo and cpu may help too.

I'm upgrading for around 6-700 dollars
This includes:
Corsair TX650
ASUS 6950
8GB G.Skill 1600Mhz
Gigabyte 990FXA UD3

If this is a CPU problem, I will have to upgrade my CPU instead of my GPU... Which I really don't want to do.
Right now I have a phenom 945 @ 3.0Ghz

Hope your cooling it correctly, the hot weather can contribute to an already hot CPU

sounds like you need to do a little research b4 overclocking next time.

BOL

I've had it overclocked for around a year now, using a pre-set in the BIOS.
It was just extremely random that I all of a sudden got that message today, and I need to know if it would be a motherboard, or CPU problem?

There are several areas you should look into.

BIOS/mobo - CPU compatibility.
It is possible that you need to upgrade BIOS.

RAM - Mobo compatibility.
Possibly the RAM is inadequate for this mobo, and/or memory timings are wrongly set. Memory (it's capabilities) is the prime reason for an overclocking failures in general.

My friend had a very similar problem of 'Overclock Failed' and he upgraded his PSU to a more powerful one. He also changed the CPU Fan and it fixed it completely.

Best of luck.