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#51
It is possible the CPU was damaged by overheating. I have seen graphics cards become faulty after overheating, so I imagine the same is true of CPUs or any electronics. I would recommend that you see if you can get the temperatures down first, though. It'll cost a lot less if it is just an overheating issue and not a bad processor.
If the processor is under warranty still, you could see if you can RMA it.