Well T-Birds do run hot... but... are you sure you have proper contact between the heatsink and the CPU core? Are you using something like Arctic Silver or just that cheap thermal pad that comes on a lot of heatsinks? What is the temp inside your case? If you have bad air flow through the case, that'll cause the CPU temp to rise. Heatsinks work on heat differentials... on average, a quality heatsink with an average fan can keep a CPU at about 20-25 degrees F above case temp (speaking in terms of Athlon XP CPU's, I've never owned Intel so I don't know if the same holds true for them)... at least, that's been my experience. AMD recommends 2 case fans that flow 35 CFM each, one in front, and one in back. Most cheap case fans that you get free with a case, or get for $2 don't flow 35 CFM.
Check for adequate airflow through case.
Check to be sure heatsink is mounted properly.
Check to make sure the fan on the heatsink actually works.