Andrewdna:
What kind of compound are you using? Curious whether it is electrically conductive or (hopefully just) good for heat transferance.
If a grease like Artic Silver, RadShack, etcetera is applied too thinkly to the die, the temps will get unhealthy. Clean it off, then break an old credit card in half (for example) and place a drop or so of the grease in the center of the CPU die. (That's the little square area that contacts the heatsink.) Then spread the grease or compound thin enough that it is covered but you will still be able to (just) see through it. Kind of like holding your hand up to a light and you can sort of see the light through the skin webbing between your thumb and forefinger. Compund is only to fill in the the minute imperfections in the die to insure a good flat on flat even contact between the two metal surfaces (CPU die and HS). This facilitates optimum heat transfer from the die to the HS, as though they were
one continous piece of metal.
Good luck.
Brangwen