Ok, you were right I removed the HSF to find the thermal paste smeared on the chip.
e2160 - L2
1GB Corsair XMS
Abit IP35-E
I've got it running on stock voltage 9x333 = 3.0Gz with CoreTemp reading 38c-40c without load. This is a machine to run Visual Studio, Office and Browsing/Email. Does that seem hot?