Most graphics cards are good for just a tad over 100C (don't try it). My buddy had an old Nvidia 8800GT which, as most good computer builders will tell you, runs really really really really really hot. He saw it hit 80C and it crashed. He thought it broke, gave it to me and I got him a new one for his birthday.
I was determined that it was not broken, so I sought out to fix it. I just installed the latest drivers and SHAZAM, I got a free 8800GT, which I am still using in fact in another rig.
80C is hot, but not that hot. Running at that temperature will cause your components to not run as long (life wise) but it shoudl be alright at that temperature. It is most likely a driver or new software issue. I would recommend getting something like MSI Afterburner to adjust the fan speed in the long run.
I have a 4870 that has idles of 70-80. Yeah its hot, but sure is quiet
Had an X1900XT over 115c(fan failure while gaming. not even an artifact[had been like that for hours too], but it sure looked odd to see the temperature on the taskbar overlapping it self). still works to this day.
80C isn't bad as the posters above me have said. I personally would try for lower temperatures though. Try downloading MSI Afterburner and set up a custom fan speed chart. IMO I would have the fan running much faster than 38% at 80C. With Afterburner you can set custom fan speeds based on the temperature. Say if it's running at 70C you can set the fan to 50% and at 80C set the fan to 70%. It will be loud but while gaming it shouldn't be too bad. In CCC the fan speed controller does not have that feature and runs at the speed you set it to no matter what the temperature of the card is. You may also try to replace the thermal paste of the card. Took me about 15 minutes and it made my card run much cooler. Other things you may look into is case airflow and the location of your case. Computer cases are best left out in the open and not in a desk cubby where it's difficult for hot air to escape.
My card runs hot (relative to other games) in Skyrim even though the load isn't 100%. In BF3 it runs around 53-55C at 100% load but in Skyrim at 80-90% it runs around 55-58C. It's strange.