Hmmm... My Duron 800mhz (8x100 week 31 1.70vcore on an Abit kt7 UL bios) runs 33C ambient and 38C under Quake3/heavy load (I find that Homeworld Cataclysm actually raises it more, to 39C, but that may just be the time of day or something). 18C (65F) ambient temp when system is off (which matches my home thermostat's reading). I find the CPU core will be a number above the ambient room temp. So in this case mine is room+20C under heavy load. If your home is warmer, then I would expect your CPU temp to be warmer by the same amount. Server admins are right to keep their server areas cool
Taisol CK733 in a Fong Kai 603 with air duct. The Fong Kai is a very effecient case... in another case I'd bet I would have a higher reading.
When I was overclocking to 950 (not stable) I was up in the 45-49C range at 1.825vcore. This CPU won't even do 850 stable without maxing the voltage

I don't like being over 1.8 so I tuned it down to 800mhz@1.7v.
I've seen many people run over 50C without problems... so I wouldn't worry too much... but 50C+ (122F) would make me a little nervous. I've also heard of people with modified boards running core voltages in excess of 2.0v. I would not recommend this... but aparently it is possible.
My main goal is stability... so I don't like to risk random crashes... but in my opinion, the max vcore on the Kt7 shouldn't harm the CPU... but it will get quite hot... and with high heat comes a greater risk of instability.