34 to 40 idles is ok the 80 during you burn test is a bit high if you had an aftermarket cooler it would not go that high the small coolers intel gives you just cant disapate heat when it gets to higher temps.
He is obviously overclocked anda good bit too stock is 1.86 ghz. Look into an aftermarket cooler dosent have to be real expensive one i use an OCZ vendetta2 got for 29.99 and it woks nicely. Dont expect to see your idle temps drop. The big aftermarket coolers work well when you start producing lots of heat. I would expect with aftermarket cooler those core temps will go down to lower 60s.
As mentioned above the only thing you can really do is get an aftermarket cooler. Even a lower end one should perform better than the intel stock heatsink. Make sure it's all seated correctly and apply the correct amount of thermal paste and you should see those temps drop.
so reapplied the thermal past. since it was a dual core i did the line application method and i found out my stock cooler had two pins that weren't sitting properly.
how long should i wait so i can actually start getting readings of temperature that are accurate?
The two pins that aren't seating don't sound good. If proper contact with the chip isn't being made then the heatsink won't dissipate the heat well enough. This may be why your noticing higher temps at max load. Try a burn-in test and see what happens.
Far better than they were 60C sounds a lot healthier than 80C at full load. You should be ok with those temps but you said you had a new cooler on the way so they should improve again with that installed. Good luck!