Have i installed my cpu cooler correctly

[wildybill]

Hello,
i recently installed a Cogage Arrow heatsink, at the moment it is working better then my stock cooler but i am unsure as to whether i correctly installed it as it was my first install, right now im running a prime95 stress test with my i7 920 overclocked to 2.93 and its sitting at 65C, should i be able to overclock it to like 3.3 Ghz before going into the 60+ with this type of cooler correctly installed or is that really the best this cooler can do?

 

[wildybill]

i felt the temp of my heatsink at the top and it was barely warm at all, is it normal for it to be cooler further away frm the cpu or does that mean it is not efficiently transfering the heat?

 

[wildybill]

i should also note that i am extremely new to overclocking and i started out being able to overclock to 3.6 without getting a blue screen, but as i progressed just testing out different frequencies its gotten to the point where i blue screen anywhere above 10% frequency increase, is there a good guide around anywhere for this crap? at the moment im using the safest option for me to overclock, im just using the epu-6 engine and setting a overclock percentage then letting it self-calibrate