It's a bit difficult to tell anything about the x8/x16 issue without knowing anything about your motherboard, its slots, or if anything else is plugged in... more detail might help there.
If you have a powerful, well installed heatsink on your CPU and it's still hot - you might need better case airflow. If you have a howling gale blowing through your case and the CPU is still hot - go back and look at the CPU sink again. Or, alternatively, your idea of a "high idle temp" might need to be relaxed, depending on your CPU type.
Make sure your graphics card is installed in the PCI-E slot closest to the CPU socket. Since your motherboard runs at x8 speeds when both PCI-Ex16 slots are populated, my guess (and it's only a guess) is that the secondary slot will ONLY run at x8. If your graphics card is installed in the top slot, make sure nothing is installed in the secondary slot.
As for the CPU, I'd ask what temps are you seeing? The case you have should provide sufficient airflow (front intake, rear exhaust).
Yep, i did a fresh install of my OS. But i have a feeling something went wrong. I have 11 svhost processes running when i boot up which surely isnt right. Its Windows 7 64bit.
Ye, the graphics card is installed in the one closest to the CPU. I recieved a VGA switch card with my mobo, and im not entirely sure as what its for? On the back it says 'Please keep this switch card on the Black PCIex16 slot. Only remove it when you want to instal other devices.' I dont have any black PCIe slots so im assuming its just a generic message but im not sure. Any clues?
If you purchased a retail version of your CPU, it should have come with thermal grease pre-applied to your Heatsink/Fan (HSF) assembly. There should have been no need to apply any unless you cleaned what was pre-applied off and placed some of your own onto it. Yes, if you applied too much, it would affect how well your HSF cools your CPU. You never did reply with what temps you're seeing, so we don't have any idea what actually is happening on your system.
Side Note: I'm also running Window 7-64bit and have 11 svchost processes running. I wouldn't worry about it.
According to this Tom's Hardware Article on the X4-965, you should only be seeing a five degree celsius increase above ambient temps at idle. So if your room temperature is 78 F (25.5C), your idle temps should be around 30.5C.
Of course, if your ambient temps are around 105F, then 40C would be about right. If you're sure you have decent airflow through your system, then I'd probably go ahead and remove/re-apply thermal compound; making sure not to use too much (or too little).
Okay, i checked in my mobo manual, and it says that the 2nd PCIe Slot is the x16 slot.
Which contradicts everything everyone has said here. So im even more confused now.
Anyways, i put it in that slot, and its still running at x8.