It's probably not defective. It's the top GPU isn't it? No room for the top GPU to get enough airflow. I have experienced this on more than one SLI rig (Xfire is the same).
Have you swapped GPUs to see if it's just that card?
If temps stay the same, RMA. If the temps swap, do you have a third GPU slot to give the GPU room to breath? If so try it. Run benchmarks if the results ain't bad then live with it.
Otherwise your quick parts list is missing things. It's easy to head to the 'Click n Buy' sites' and pick stuff.
Here, what that usually means is don't know water cooling yet.
95C is not an emergency, it's loud but won't break anything. If you want to watercool you need to treat it as a hobby and not "BUY STUFF NOW", it's not a smart idea and over the last 5 years I seen the rushed WC buys.
We have STICKIES Please read them, successful folks spend a few weeks learning.
Your XSPC GPU block is not bad, middle of the pack, out of stock at your link.
Your D5 res/pump setup.......... Ever hear of the other pumps that are on the market? You should do the research.
Your rad choice, the Stealth. It was great in 2007. There is better and you NEED to do your heatload calculations first.
You did well on your second rad, good stuff. Let me ask you. You know the FPI and why it's a better rad than your first choice?
You haven't mentioned tubings, fittings, hose, liquid, and biocide yet. There are things the yellow words and a bit of homework won't fix. It's a hobby and prep and knowledge can't be underestimated.
Maybe you know all the stuff and have WC before. If so, I see problems with your planned purchase.