I might overclock my 3500+ once I get good cooling, etc (which I do not have
I have heard the 3200+ can overclock extremely well though, yes. Good luck with it
Its expected though, since your forcing mroe voltage through it at any one time, your going to increase temps significantly. Thats the problem with silicon...
A nice CPU heatsink/fan combination though like the Zalman mentioned, should work wonders.
Then theres Water Cooling, but I will mention that I believe that a cheap water cooling system, though quiet, might not be as powerful as a good and rather cheap heatsink/fan.