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I would RMA it becase they are designed to operate in very high ambiant temps (think Florida) and shouldt do that, BTW it is the double slot cooler isnt it and you havnt messed with the fan speed settings?
This is the way i see it
Just for a moment lets asume the perfomance is about the same and we are talking about 2 cards against one (SLi or Crossfire)
1. 2 cards use more power then one
2. The memory on one card is wasted in SLI
3. More chance of 2 cards going wrong
4. (Generaly) one...
I dont own one but i am 99.95% sure that 70 isnt bad at all, the only way you can realy redcue them temps is to get an Arctic Cooling ATI silencer but that woul void your warranty
As I think its non condcting white goo I cant see it doing any damage, and as you said you have a lifetime warrenty. Then again paying £350 you should get perfection.
Have a look at the memory forum to get a better idea, and no as far as i know it was only the XPs that sufferd badly, the A64s i think are badly affected by timings