So I decided to push a little further. I upped it from 2.6GHz to 2.8GHz and ran Orthos and after 30 mins my temps were showing 62C in Core Temp. The Easy Tune 5 Pro was showing the CPU temp at 46C. I don't know which one to believe. Here the settings I did.
FSB: 350
CPU Multi: 8x
vCore: 1.35
Memory Speed: 1050
vDimm: 2.1
On a plus side I broke 10,000 in 3DMark06
For the meantime I backed it down to 2.0GHz until I get some MX-2 thermal paste ordered. How Ever I noticed that Core Temp is still showing my temps at 36C at idle which is pretty high. I have tried 3 different versions of Core Temp and I have tried Speed fan, it says the same. TAT shows it running at 40C
This comfirms that I will need to reseat the AC7 and I think I will lap it as well.