That method you used isn't the best for C2D chips.
So here is a shot of my q6600 installed in the MB with AS5 right before I added the HS. It shows the right amount in my opinion given a lapped HS and CPU (which is a thicker line than I used before); the red triangle I drew shows where that tag is on the CPU, remember that on quad core chips, the dies are placed in a different located relative to a dual core, see the instructions
on AS5's website for more):
I generated the temps in the far right box with that line of AS5 about 18 h after I installed the HS. I will say that the temps were higher before I let the full load go for a while, so there really is something to this concept of 'break-in' with AS5 at least.
If your temps don't improve you may want to consider lapping your CPU and HS; the vast majority of temp problems stem from poor contact between the HS and IHS on the CPU. C2D chips are notorious for having irregularly shaped IHS.
Read this thread
, it contains my Q6600 lapping experience. Read this
, it contains my Ultra-120 Extreme lapping experience. (Pics and results).