You may have used too much. if the layer is to thick it will insulate the CPU from the heat sink.
Some other things to check:
The fan is on.
The heat sink is properly seated, fully touching and level.
if the fan is on full try removing the heat sink and checking to see if the paste is spread thin and that is has been spread as if it has had pressure on it from being mounted (if it was not level the paste will not be uniformly spread.
(just in case DONT REMOVE IT WHILE THE SYSTEM IS ON)
further I checked out the heat sink and its rated for 3.06 not 3.2, 3.2 makes me think it is on the 800mhz FSB, where as 3.06 is on the 533Mhz there is a difference L2 cache is accessed more often with a higher FSB that will give you more heat. Also the heat sink is kind of small, and aluminum. I don’t think this cooler is appropriate for this CPU, it is keeping it with in the specs, but that seems way to hot for me.
I’d go zalman or swiftech
http://www.zalman.co.kr/eng/product/...t.asp?code=009
http://www.swiftnets.com/
Yes they are HUGE make sure they will fit your mother board, but holy hell do they work great. I have a CNPS7000B-Cu in my system. At a full load case closed in a hot room, I sit at 123F, case open its 104F at a full load, idle it’s around 89F best yet, it’s on low and its silent, I can get it colder if it is on high and there is a slight hum to it. I also have a similar sink on my video card, g6800 ultra.