I'm running a 2.8Ghz Intel processor in an asus pundit (with 512mb ram, 120gb hdd, 8x dvdrw) the cpu temp is around 65 C. Fro running asus probe I see that the max reccommended temp is 77 C but I've been reading that a cpu temp of 40-50 C is best.

The Pundit is quite compact so tis to be expected that its a bit hotter than usual but is this too hot? and what can i do about it?

the pundit came with its own fan as did my intel 2.8 so i replaced the pundit cpu fan with the intel, was this wise should I put it back in again?

what other ways could I go about cooling this system down, seems as it is so small.

any clues would be a great help.

65 is too hot, though your readings may not be correct, depending on the placement and accuracy of the probe. Try re-seating the heat sink and fan. Clean them both off thoroughly, put on a thin layer of thermal paste, and put the heatsink on the cpu. Take it back off and see if there are any spots that did not make contact. Add a little more past to those locations, then reattach the heatsink and secure it. You aren't really able to add more case fans or anything, but don't keep the computer in a hot room, and be sure there is clear space around the entire box, so nothing is blocking the airflow.