I've got an Athlon 1.33 that runs right around 125 deg F day in and day out.
I've got a cooler on the chip, plus 3 fans
in the case. No matter what I'm doing. i.e., Photoshop renderings etc. it never varies from that temperature.
I don't think your temperature is too high. It's probably near the upper edge of what I'd call the "comfort level" but nothing
to be concerned with. If you haven't already done so, add another fan or two to the case and you should be fine for a good long time.
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