Are my i5 3570k temps normal?

Those temperatures are pretty high, I don't think that's normal at all. Vcore of 1.26 isn't high (that's relatively low actually), so I don't think that's the culprit. Are you positive that the thermal paste was properly applied and the heatsink is properly placed?

Yes, the heatsink is properly placed and I used quite an expensive thermal paste for it and properly applied it.

it could be a few things. the first is make sure in the bios under hardware monitor. check that the cpu fan settings are still set to auto and temp set to 40c. as set point. also check what the min fan speed is set for. what could be the issue is that the mb fan profile is not working well with your 212. it may not be spinning the fan to max speed. good motherboard will a a temp set point max the fan out. if the setting are set to auto and the cpu hits 60c or more under prime. (use open hardware monitor) check for two things when you run prime 95. does that fan say 100 percent. and when you start prime95 doe the cpu jump to max temp or does it climb. a quick jump would be a thermal sensor read issue. if it a slow climb from 50 to 70 or more. go back into the fan settings in the bios switch it from auto to man and set the fan speed to max. you should hear or see the fan max out and with open hardware monitor the fan should be running at the 212 max rated fan speed. if it is and the temps are the same. then you may have two other easy issues. 1. when you put the new cpu unit on you did not clean the old paste off and have to much thermal paste. if the cpu was cleaned then the paste on the 212 there too much or not the amount needed or the paste was old or not good. there are some name brand pastes. antec thermal pastes that are so thick that they do a worst job of moving heat from the cpu to the cpu cooler then other pastes.

^^Yeah make sure the fan profile is spinning the fan correctly.

But: All chips act a bit differently. Using Auto Vcore isn't the best idea. I know motherboard makers want to make it easy, but you should be manually setting your vcore and only upping it when needed. Try setting your vcore to 1.1v and 4ghz. Test for stability. If it's good then up it one multi at a time while testing for stability. You should be able to get 4.3ghz at under 1.2v vcore. No guarantees obviously but auto vcore settings can be way too high.

After doing what you told me I get idle tempeerature of under 51 c/ While gaming on cpu intensive games max temp is 58 c. After doing prime test for half an hour the max temp I see is 78 c

http://i49.tinypic.com/iwr787.png

Is that alight?
Should I be worried or the fact that my gaming temperatures are now under 60 c, should I not be worried

After doing what you told me I get idle tempeerature of under 51 c/ While gaming on cpu intensive games max temp is 58 c. After doing prime test for half an hour the max temp I see is 78 c

http://i49.tinypic.com/iwr787.png

Is that alight?
Should I be worried or the fact that my gaming temperatures are now under 60 c, should I not be worried

The climb of temperature was a slow climb, so it seems sensors are good but seems like it won't stay under 78 c

You are running your i5 at ~25% higher than stock voltage. Combined with your ~15% OC, the chip will be generating around 60% more heat than it would at stock settings.

This will inevitably translate into much higher core temperatures. You want to use the lowest voltage possible that will let you reach your OC target and apply cooling accordingly... or go the other way around and set your over-voltage and temperature limits then find out the highest stable frequency that fits.