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Yes, your fan needs to be smack up against the radiator so it will produce as much air pressure as possible through the radiator. Pressure diminishes dramatically with distance and it also sounds like you have some sort of mesh or grate that is between the fan and the radiator that is blocking some of the air flow.
It's funny how Nvidia and EVGA think it's ok to heat up your case to the high 70's with their video cards, all of which have a fan more than capable of keeping said card in the low 50's under load, isn't it?
All for that quiet video card that people rave over so much. Don't run the video card fan very high and let the heat be the responsibility of the case for removal. Blame shifting at its' best.
RGone...