P4s rated above 3.2 can be a pain. My sympathy (from one that has suffered thremendously from throttling).
First of all, check if your heatsink is hot enough to make the temperature or the AS5 interphase layer credible.
I understand the XP-120 to be an impressive heatsink, but I've had no immediate contact with one. Is the bottom base copper? I think you should aim for a HS with copper base.
If your HS isn't hot enough, you either have a too large temp jump across CPU - heatsink, or your temp readings are false.
Try "throttlewatch" (google for it) if you haven't already. If throttling kicks in, it doesn't matter much if your temps are right or not, you still have a problem.
If you think your HS could be a bit hotter, considering a 70+C cpu at the bottom of it, there is one final thing you could try. With a very good surface finish on your HS, try an extremely thin layer of white silicon heatpaste instead of AS5. It's a bit difficult to get it really, really thin. It should be really, really thin and evenly spread from the start. You're aiming for less than one tenth of the thickness of a AS5 layer. Don't spread any on the HS. and try to get it as thin as you can, while still fairly even. It should be quite transparant. Of course, your cpu and HS should be ABSOLUTELY clean to start with. We are basically trying to avoid even dust particles here.
OTOH, if your HS is quite hot, you should question if your fan is blowing in the right direction. It should blow air ONTO the heatsink! Not suck from it. This is important, since it increases the exchange of air in the boundary layer considerably, much improving cooling. Secondly, consider if your airflow through the case is sufficient.
If you can't get it to work under sustained load without throttling, I think you're entitled to a replacement. Of course, what I think don't matter so much. Still, if you can't rma it, try contacting Intel directly.