I have Bugless Beast 7.5 at 1.0 Ghz and setcpu is working fine. My phone is running about 70 degrees when inactive. When I turn it on and start surfing, it jumps up to 90+ in a hurry. So the sleep profile is def working. That leads me to believe the other profiles are working too.
I've never ever had my phone heat up except when I was playing a very graphic intensive game (homerun baseball).
I've had phones heat up, but "burning like the screen was going to melt", and then it was fine? something doesn't make sense here. I've never felt my Droid heat up from use, and I'm overclocked at 950 and use it all day and all night.
I'd be interested to know what you guys have set on profiles.. I'm currently running BB latest version. I have my setcpu profiles set to:
Failsafe Batt >40.0C 550/125