wait a minute....are you saying that your 1.6 Pentium M will clock down due to heat, even though the cpu is pegged at 100%? I thought only Pentium 4's would throttle back due to heat...
The inspiron 1200 I use has a 1.3 GHz Celeron M (Dothan). I keep track if its temps using a nifty program called I8kfanGUI. The factory doesn't turn on the fan until the cpu hits around 65 C. I have it set similar: It turns on the fan when the cpu hits 60C, and off again when it reaches 50C. Only the low fan speed is ever utilized. Honestly the fan doesn't turn on that often. It usually takes about 30 minutes of typing/web browsing before the fan turns on, and then it will take about 5 to 7 minutes for the temps to once again reach 60C. The fans runs for about 25 to 30 seconds.
I haven't tried to overclock this laptop (1.3 GHz is way more than I need), but I have tried to undervolt the cpu. You lucky pentium M owners can use software utilities to undervolt, but since the Celeron M lacks speedstep, I had to attempt a pin mod. Unfortunately, the stock voltage of the Celeron M does not lend itself well to pin modding, as insulating one pin results in a voltage drop of either something like .008 volts or .3 volts, depending on which pin you want to do. Needless to say, one is too little to matter, and the other too great for the processor to work, so I had to give up that idea. I'll probably pick up a slow Dothan pentium M (1.5 GHz or so) and underclock/undervolt that.