Well, I just decided to move forward, despite the high readings. I installed XP and went straight for Real Temp. Installed and it is giving me 23/24C!! So what the hell is the BIOS doing?
I'm going to update BIOS and then go back and check settings. I disabled speedstep and C1E until I got the o/s installed and drivers in place. But I guess the temp reading from BIOS is different than what I'm used to, or is plain old wrong.