Hello, I am back on this argument because decided to give up with this machine, I really hoped that replacing the old thermal paste with a liquidmetal one could be made some difference but no, it crashes now as before.
The lockup happens either on a simple OSX vanilla installation or a really intensive task like installing QT4 from MacPorts repository that involves recompiling of almost any library which QT4 rely on: this mean leaving the eMac computing for almost a week, night and day. I think that going back to original 1.25 GHz will be the best solution but I am not going to perform the clock downgrade, this will be fun time for the next owner of this machine since I am about to give it away. I have still two MMDs, one overclocked to 1.50 GHz the other on stock 1.42 speed, they proved to be way more robust and stable over time and I think I will stick with them for all my PPC experiments