Have you tried your overclock at lower voltage? Reason for asking is that I've had my E6700 up to 3.5GHz with less voltage than that. At the time I was using a Zalman 9500 and the temps kept getting higher that I wanted. Now I am using a 9700. At 3.4GHz running WCG - both cores 100% - the highest temp I've seen was 51°C with 24°C ambient. I used Arctic Silver Ceramique instead of Zalmans thermal paste.
Sounds like your Zalman 9700 was not seated properly or was defective or ???. Something wasn't right....
Note: All Zalman cooler do not come with the Fanmate as the article says. The fan speed is controlled by the motherboard on some models. Neither of mine came with a Fanmate controller.
FYI: The rest of my system consists of a Cooler Master Stacker 810, D975XBX2, 2 X 1GB of Crucial Ballistix PC2-8000 DDR2 1000MHz, 600 watt Enermax, and 2 X 150GB Raptors in RAID 0.
