Your temp should be fine, when I ran my P3 850 at 1054 at 1.85 volts, my temps would shoot up that high under full stress, and I even have a peltier. Look at your voltage when you are under full load, it should get closer to 1.825 or maybe even go beneath it. That's what my cpu does, under full load the voltage reading is actually .02 under what it normally is, and .03 higher when idle.
I still wonder how a peltier can keep a cpu below 0 when idle, but as soon as I run Prime95 the temps shoot up. I ran it at 1.95 volts for awhile, and the temps shot up to almost 70 C. But I was just fooling around then, my cpu runs stable at 1054 at 1.7 volts, and temps never go above 50 under full load.