1) Check your power profile to make sure you aren't on Power Saving. This will prevent the CPU from clocking up to full speed.
2) Phenom II support does not necessarily mean it will support the 965. Wattage comes into play as well. Many older boards that received BIOS updates only go as far as the 95W PII 945. I suggest you check again which CPU's the new BIOS wil support.
I've figured it out. It turns out there is a bios fix for multiplier settings. It is running good now. The only thing i had to do was to manually set the multiplier for core 0 to 17. Other cores were already at 17x.