To begin with lots of thermal sink between the cpu and the heatsink is not going to help you reduce your cpu temperature. Rather you are increasing the chances of your cpu getting even more hotter. The more thicker the layer of thermal paste between your cpu and heatsink, the hotter your cpu is going to get.
The thermal paste applied between your cpu and heatsink should be a wafer thin layer. Apply the thermalpaste on your heatsink and using some plastic card smear it evenly over the heatsink base. Once it is evenly spread all over the sink, take some kind of non-static paper like lens-cleaner (you can get them at any store for a buck) and remove all the extra grease from the heatsink. The ending result should be such that the themal paste looks like a haze on your heatsink. Then take a miniscule amount of thermal paste, like a small grain of rice and put it on your cpu. And that is all the thermal paste you need!!!! Hope that helps you.
Secondly what kind of heatsink are you using. Is the fan on the heatsink blowing on the heatsink or away from the sink. Do you have sufficient and air flow in and out of your case. If you airflow is incorrect, this also contributes towards very high temperatures.
I have an Athlon XP 2100 with an slk-800 all copper heatsink with a vantec tornado 80mm fan blowing air on the heatsink. Got 1 80 mm fan in the front pulling in air. I modded my case and added two 80mm fans on the side of the case pulling in air and blowing directly on the cpu. Got 2 more additional 80mmm fans blowing out air from the back. And finally got a 120mm fan on the top of the case blowing out air from the case. The resulting temperature from all this -
--> Cpu Idle 28C, System 29C
--> Full load CPU - 35C, System 34C
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