Are you using an aftermarket cooler or the stock CPU cooler? If you're using a stock cooler, 60C under load sounds about right. 40C is totally fine.
I believe that 100C is the shutoff point for an intel chip but don't quote me on that. If you're still worried you can get a decent aftermarket heatsink for 30 bucks. The CoolerMaster Hyper 212+ is an excellent option.
Here's a link for confirmation: http://www.tomshardware.com/forum/305790-28-temp
Edit: Added link
I'm running a Zalman CNPS10X Flex. I wouldn't have the nerve to slow down the fans with a stock cooler.
But what you both say is that I've got headroom above 60 degrees. I saw another post from someone who got up to 76 running Prime95, so I guess I'll stop worrying. I could have just read the mfg specs, but I was interested in real-world experience.
The thermal compound is Arctic Silver, and I checked it within the last year to see that it was still smooshy, not crumbly. Great technical terms, yes?