Is my 3500+ CPU Overheating? And Cool 'n' Quiet

Hello, I have an MSI Neo2 Platinum Motherboard with the latest Bios (1.4) and a 3500+ Newcastle 64 Bit CPU.
I was wondering why my temperatures were so high when they should be idling about 40 degrees, instead they idle from around 45-50 degrees and then when gaming on something more intensive than SOF2 they can go all the way up to 59 degrees!! I have used both stock cooler and the Freezer 64, the Freezer has slightly better temperatures by around 1 degrees.

The real reason I am wanting to know is because I really don't like noise and so I want the fans down as low as possible. My case which is an SLK3000 Antec with a 120mm fan at the back has 3 speed options, it is currently on the lowest. When changing the speed with it with speed fan if I put it on the highest setting will it be at the highest setting like if I had manual adjusted the slider?

I have enabled Cool 'n' Quiet in the Bios but I have to start Corecenter (MSI thing) to actually turn the speeds on the CPU fan down, on Speed fan without this the CPU fan is at 100% and so is very noisy.

So do you think that the temperatures on the MSI Neo2 Platnium board are right? If you want any other info please just ask, many thanks, Alex

PS: I know that Newcastles run hotter than Winchesters but I don't think it should be that hot

http://img167.exs.cx/img167/863/overheating6pr.th.jpg

the neo2 still has comical temp sensors doesnt it?

my 3400 Newcastle is a very cool chip even with a humble XP90 and a ys-tech fan at 7V, atm (light useage) its at 34c, but thats after a game of BF1942, Newcastles run hardly any hotter than the winchesters so theres definately something wrong with the sensors.

:)

EDIT: oh and my temps are without cool 'n' quiet

mine were 39 idle, 45 after prime95 aka full load. :) on chaintech vnf3-250