Core 0 54 degrees

I downloaded SpeedFan, and either Core 0 or Core 1 is 54 celcius.

That's quite hot, isn't it? I was playing WoW with all graphics settings at max on my new rig, a e8500 with 4 gigs RAM and an ATI Radeon 4870HD.

System is also high, (53 celcius) CPU is only 38 celcius, which surprises me a little.

So first things first...where is it hot exactly?

gamemaster3000

Try RealTemp or CoreTemp and watch distance to TJMax. If in full-load is >20-30 you're fine.
54°C (if it's in load) is OK.

that is hot for a 45nm chip espcialy if ur not overclocking it (unless ur under stock cooling in which case its totaly normal). my e8500 e0 stepping was around 30c idle but thats under a TRUE.

if urs is c0 its normal from my experience to see slight fluctuatuions in the cores but the e0s were right on target for me.

Also make sure the temp program u r using has a TJmax of 100.

and finaly that temp that you quoted "CPU is only 38" i assume is from a motherboard program or similar. im 99% sure that if ur core temp is 50ish then that temp is the ?tcase? temp there is next to no point looking at that temp.