That's a little hot but it should be okay. I've got a Pentium D 2.66Ghz dual core processor and even with an aftermarket cooler and air being drawn directly from outside the case (manifold) it will get as hot as 48°C under severe, prolonged load.
Now, if it is staying at 120 under zero or minimal load, then you do have a problem. That's probably not good if it's doing like that.
Common solution is to clear all dust out of the system and to ensure that you have proper airflow. Then if that doesn't cure it, you can try to take the stock heatsink off and clean all the old thermal compound off and replace it with newer and/or better compound.
Now, if it is staying at 120 under zero or minimal load, then you do have a problem. That's probably not good if it's doing like that.
Common solution is to clear all dust out of the system and to ensure that you have proper airflow. Then if that doesn't cure it, you can try to take the stock heatsink off and clean all the old thermal compound off and replace it with newer and/or better compound.