No I do not think it is ruined now.. As it would not boot up... If you do not feel much air coming from the fan you just need to get a new fan...But yes 127c is 260 degree F.. I think once you get a new fan things will change for the better..

The good thing is you have AMD chip.. They are built for taking heat but not much past 80c..

Here is a great fan, I use it and it pushes allot of air..
Newegg.com - ARCTIC COOLING Freezer 64 Pro 92mm CPU Cooler - Retail

Ok, is it fairly simple to replace the fan? Just take out the screws and put the new one in?

Yes you will need to take a dry cloth and wipe off the compound that is underneath it(the silver goup that is on the cpu now).. Make sure it is nice and clean and then put the new fan (they are easy to install with brackets) and let her rip..

Aslo make sure you unplug the pc when doing this.. Then plug the little 3 or 4 plug wire into the same place you are taking the fan/heatsink out of

Here is the fan that is compatible with your chip

Newegg.com - ARCTIC COOLING Freezer 64 Pro 92mm CPU Cooler - Retail

Alright. Thanks a lot and I'll be back if it's my heatsink.

I will be here..

Hey merlin, I have some good and bad news. I was a little sceptical last night about how hot my cpu was after noticing it had no fluxuation - even after opening the case. So I went ahead and downloaded another component temperature monitor (Sensors View). Apparently, this one works better on my pc, because I have a real temperature now for my cpu that fluxuates between 25 and 32*C. Now that seems like a good thing, but I'm still having those problems I explained earlier. Any ideas for the problem?