Osage:
I've got a similar setup, including the same MB and case, except that I've got the 3.06/800 version of the P4. I use an Alpha heatsink and have Vantec Tornado fans on the heatsink and the two case outlets. I replaced the case's two front fans with beefier 80x25mm fans. I use a fan speed controller, and when I crank up all four channels (driving five fans), it sounds like I'm running four hairdryers. If I run the CPU fan at about 4000 rpm and the case fans at 3000 rpm, the sound isn't too bad. Using those fan settings and running the memory bus at 215 MHz (CPU at about 3.2 GHz), I see the following temperatures CPU temperatures under idle and full load, respectively: 42.5/52.0. Using the stock fans and Intel CPU heatsink and fan, the temperatures were about 7-9 degrees higher. My system is completely stable now, and was with the stock setup. I only changed to experiment a bit with overclocking.
I don't know what to make of the IC7-G temperature sensing situation, but it seems that the P4 will run just fine well above the temperatures that you are reporting.
- JNOV