Holy jeesh that's bad.
First thoughts:
Take off the heatsink, wipe it clean with isopropyl alcohol, dry it off, use Artic Silver 5. Put a dot on the CPU and spread it around with a plastic bag or coffee filter. If you have a dual core read about proper thermal grease placement. Spread properly. Re-seat your heatsink fan and hope for the best immediately. Beyond this for this step, make sure your fans are running.
Another check, make sure you've got adequate ventilation for your rig. For the interim if the above doesn't work, point a box fan or two right at your rig with the case open and turn them on high.
Is the ambient temperature a factor? Is the case inside of a giant metal box that collects a lot of heat? Open a window. If it's uncomfortably hot for you, it won't help your temps.
Hope some of that helps.