I experienced exactly the same issue (minus the warped card, don't overtighten and everything should stay straight). With stock cooler I was running 48 - 55C, Zalman dropped temps to 41 - 42C but stability went horribly bad. Can only run at stock settings now. With stock cooler I had comfortably OC'd +38 Core + 60 Memory now it crashes out unless I revert to exactly stock settings. Seems stable at stock settings, but even +1 on the core causes it to go nuts if I actually exercise the GPU.
In looking at the stock cooler it is a very large flat copper unit, wondering if it makes contact with another chip somewhere that the Zalman misses, or fan connector sees no fan attached and feaks out into some 'default mode' or voltages get out of sorts. I used Artic Silver between the GPU and Zalman and was careful not to use too muchand have it spill out onto any leads, but wondering if perhaps I used too little and parts of the GPU are not making contact, although I would think I'd see an overall temp rise in this situation. Only other thing I can think of is the memory chips don't like the heatsinks.
With stock coller I just used coolbits and ran the 'detect' to get my first OC point. Running detect with the Zalman installed results in the graphics first going weird (random pixels changing to weird colors) then image disappears entirely, then computer rebooting itself.
I have not changed drivers or anything else, just the cooler on the card. WIll tinker this weekend with the amount of Artic Silver and perhaps reinstall the stock cooler and see if it resolves the issue.