All Core based CPUs are designed to start throttling just before they hit TJMax. Usually when Distance to TJMax is 2.
RealTemp will show this in the Thermal Status area at the bottom. When it says OK that means there have been no thermal throttling episodes since you started up your computer. If it says
LOG that means there has been at least one thermal throttling incident logged since you last booted up and if it says
HOT that means your processor is presently throttling. Your CPU will automatically drop the multi and total MHz only long enough to get your temperatures under control and then will return the multi to its previous value. It will continue to cycle the multi up and down to control heat and will let the CPU basically sit at its maximum temperature.
Here's what an E8400 looks like after running Prime Small FFTs for 3 hours with the CPU fan turned off.
Only one core hit 100C and that only happened once even though the CPU fan was turned off for 3 hours.
http://img204.imageshack.us/img204/276/hote8400fw5.png
The Core i7 is designed to do the exact same thing. As long as your overclock isn't maxed out, they can both run quite reliably at some very high temperatures. So far the Core i7 looks like it has more temperature headroom compared to Core 2 Duo.