The clock multiplier in the XP 1700 is 11, so to get 1116mhz, you are running your Front Side Bus at 100mhz raw. You should be running it at 133mhz. The Athlon XP's are all made to run a 266mhz FSB (133mhz raw, double pumped). The older pre-XP Athlons came in two flavors, 200mhz and 266mhz FSB (100mhz double pumped and 133mhz double pumped).
As for the heat, that's too hot for your setup, it shouldn't be that hot unless you have something wrong. Are you using the stock heatsink and fan that came with the CPU (assuming you bought a retail version of the CPU)?? If so, it should be running cooler than that as the heatsink included with the XP CPUs is actually fairly decent. Did you scrape off the cheapo gunk on the bottom and use a good quality heatsink paste (like Arctic Silver 3)?? If not, I suggest you do.
Either way, if the heatsink you have is inadequate (and it sounds like it is), get a good quality heatsink and fan. Price range is only $20-$25 for a good one. Do some searching on the net for heatsink reviews.