A lot of AMD/Intel Heatsinks that come with the processor do not have thermal paste, but a thermal pad already pre-attached to the heatsink bottom. I know the last two Intel and AMD stock processors had this.
So in response to Skuzzy's a).... Did you apply an thermal paste? Or did you use the stock pad. I've used the stock pad for non-overclocking machines before without any problems.
What processor are you running btw? Also, is your airflow pretty good in the case? <- As in, are you cables fairly neat and are not blocking airflow through the case. Airflow should work like this is most computer cases:

Although bad airflow really wouldn't give you a +40F temperature increase, it can make a 5-10F difference.
I've seen Mobo monitor software misreport CPU temps before. I would do as Skuzzy suggested and go in the Bios and make sure Quiet CPU Fan is OFF and double check the temperatures. The temps in the Bios be lower being the CPU draw before Windows etc is very minimal so heat is at a minimum.