1. That's an excellent temperature. I'd actually be inclined to suspect that of being in Celsius, which would be a little high but nothing harmful.
2. No. Condensation occurs when air cools down, not when it heats up. Warmer air can store more
water, not less. Check your 8th-grade science (not all that long ago for me
3. Definitely no problem. Your CPU works better at lower temperatures. People apply liquid nitrogen to CPUs to get them as cold as possible for overclocking records: http://www.youtube.com/watch?v=cN6IVCv83oM&feature=relmfu