You're getting good help, for the most part. Start with default bios settings at stock speed.
1. Super thin layer of compound
2. Make sure the clip isn't installed 180 degrees out, the pressure point should be directly over the processor core.
3. The fan should pull air thru the sink and exhaust it away, Alphas are the exception to the rule in this respect.
4. Don't trust MBM or the bios temps, they're pretty much for comparison purposes only. Check the calibration by booting a stone cold machine directly to the bios readings, they should be very near ambient. High ambient temps have a profound effect, as well.
Try running it with the case cover off, just to see if you need better case ventilation.
Doesn't seem like you have an intel processor, but alphas and intels can require extra care to be sure that there is good contact with the processor core.