You have nothing to worry about, 105F is hardly over body temperature if you think about it. I did 25+ continuous Linpack tests at 1200mhz and got it up to 132F with no problems or restarts.
While it's no secret that I'm a huge advocate for over-clocking my Droid, I would not be comfortable with some of the temps you guys are talking about. Just because your Droid isn't rebooting doesn't mean you're not shortening the life of that cpu.
Did you try turning the clock down to 550 while tethering? That would be my first move.
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