I also have a submerged pump. My temps (admittedly on an overclocked c2-600) run about 2C over ambient. The thing I noticed about your setup that might be a contributing factor is the amount of coolant you have to work with. You are using a 4x4x4 reservoir. I use a 6x6x4 which has more than twice the capacity. If you have less capacity, you need to have a higher flowrate on your coolant and fan. I use an 80GPH Little Giant fountain pump (Rated at 2') and have a large radiator with 2 120mm Sunon fans drawing air through it. What I lack in flow, I make up for with volume and exchanger capacity.
Try a larger reservoir, or try a faster pump.
Just my $0.02