@Cloyd - Thank you! I really appreciate the help.
I logged into my Dell account and found that the processor is a
I have been unable to find anything about maximum / critical temperature for this chip. I'll check the links you posted.
On the forum I did find one other guy with the same chip in a similar situation. Except his machine has been shutting down on him because its too hot. http://ubuntuforums.org/showthread.php?t=1243720.
I still don't understand the difference between the libsensors temp 1 and the core temperatures. However the libsensors temp 1 seems to be very close (could be updating at a different rate) to what I see from i8kmon.