it may be that windows 7 is using a bit more cpu that xp did. However the change in temp should not be that Drastic (i would expect a few degrees) amd cpu's have a habit of running rather "hot" compared to the equivalent intel. but the change you have from 40 to 70 is slightly concerning it could be as you have said the thermal paste or cpu cooler.
I highly doubt windows 7 is a major cause in your problem on a system as powerful as yours as it runs on smaller dual cores just as well so i would not expect to see it using allot of resources. did you ever take the temp on xp whilst gaming that would show if 70c is normal so to say on your pc
Apart from that i have very little other advice to give except most motherboards will cut your pc...