Ok, i see that at the 72 secounds mark the CPU reached ~61 degrees Celsius and the throtle started right after at around the 85 secounds mark. Also the voltage is quite low, meaning that the chip achived the max frequency at almost .30 V from maximum recommanded for stock settings.
That doesn't look like normal throttling behavior to me. The clock speed should've come back up after the temperature dropped. Something is seriously borked here.
Something is clearly wrong in this picture, the CPU should not reach that temperature, that fast, at stock speeds and at such a low voltage.
While I agree something is seriously wrong, I don't think there's anything particularly strange about the quick temperature ramp-up. BD core does tend to heat up fast under full load; I can get a quick rise like that by running Folding@home, for example. (The main difference between this system and mine being that mine plateaus in the mid-50s, never reaches 60C, and doesn't throttle.) Enabling fan speed control exaggerates the effect too, since the fan doesn't crank all the way up until the CPU gets pretty hot.
I'd blame it on the damaged IHS and if i were you i would try to see if i can get the store that sold the chip to replace it.
If it is just a small nick I seriously doubt the IHS is to blame.
Can you tell if the fan is ramping all the way up to full speed before the CPU throttles? Because if it isn't, that's another sign that something (BIOS, most likely) is messed up.
My diagnosis based on the evidence presented so far is that you've got a combination of a barely adequate stock HSF, and a dodgy motherboard (BIOS) with broken CPU thermal management. Deal with either one of those issues and you'll probably fix the throttling (or at least get it to where it automatically speeds up again when it cools down). But unless you replace the HSF with something that has a larger, lower RPM fan, the din at full load may be unacceptable (depending on your tolerance level for fan noise).
I'm sorry to hear about your issues JBI. Could be you just got the perfect combination of memory with a cheap motherboard to make magic happen. ASrocks are pretty good low-mid grade options. I bought a higher end one for my new computer, but returned it because I wasn't impressed with it for the price (ended up buying a Asus instead). They generally have quality components on board and have a good build for the price.
Other than the stability issues with the RAM at stock it seems like a nice board for the price. Incidentally, according to Memtest86+ the RAM was actually overclocked by a few percent when at "Auto" settings; I bumped it down a notch and all of the stability issues magically disappeared. The weird thing was, it would pass Memtest86+ even at the higher speed; but Windows 7 was definitely having problems.
TBH I was actually a little surprised to see that it didn't downclock the RAM automatically when all 4 DIMM slots were populated with double-sided DIMMs. Most of the Asus AM2/AM2+ boards I've used have done that; looks like there's a good reason!
I would've bought an Asus instead, except that they discontinued all of their DDR2 AMD boards a while back.