Wow! Definitely should not be hittin' that high. Whats your CPU voltage at?
Check to make sure the heat-sink is making good contact with the chip. I installed a heat-sink on my old computer, and realized after I tested temps and saw 80+ degrees, that one side of my heat-sink wasn't completely tightened in!
Give your heat-sink a little nudge back and forth and see if it lifts on either side. If it does, that baby needs some tightening. Don't over tighten.
You shouldn't be damaged but don't let that happen often or at all ever again!