Ooops, had the post open while I left, didn't refresh first before submitting. Even so, temps should just throttle a card not blow out constantly. PSU is fine if your 260 works as it draws a lot more.
I'm leaning toward RMA especially if it's new and can be returned for a new one (some places that's 30days, some 7 etc). NV cards will throttle just like AMD when taxed to death in something like furmark etc. So even heat shouldn't cause your issue, thus after pondering a bit more...How easy is it to RMA (under limit for a new one, or are you past that time frame?)? It sucks to be just outside RMA for refund, and instead getting someone's repaired part when yours is brand new. Better to RMA rather than test for days and land outside this IMHO. It could just be incompatible with something in your system also (board most likely in a vid card case). It's not common but not impossible either.
I've seen compatibility issues with ram but again VERY rare when you can't just do manual as these are mostly SPD issues which I never use (direct timing input works 99%, spd's? Not in my vocab), but I've seen manufacturers call out certain ram as not working period. I've seen DVD burners which needed firmware update in a few cases (pc just hung when playing videos with an audio cable hooked up, unhook it and they ran through), and also a Mboard bios update in a case or two for them to work together, and PSU's zapping boards all weekend until they found out it was incompatible with MSI. Many local shops were blowing MSI's right and left, & we're talking 100's over a week before discovered. I personally blew 3 in the same PC and said What the hell (vender call...LOL)? Powered on once or twice then dead, but made it through 3 days burning in no problem (which I usually don't shutdown once built many times, you just burn in for days and pack up), and was only killed via shutdowns...LOL. I was delivering one thinking it was fine but one shutdown at their location - pfft...dead. etc etc. In that case I actually gave them my box so the distributor could use it themselves and ship to MSI/SPI for further testing. They weren't communicating properly on how to shutdown the board. Odd, but fixed with a new rev of the same PSU a week later.
Just some examples of weird crap that happens in a pc shop...LOL. I'm not surprised by much these days though compatibility is FAR better today than even 10yrs ago (and MILES ahead of 20yrs ago). They used to call plug-n-play plug-n-pray for a reason...ROFL.