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70c should be fine, but if the vrm phases or vrms are weak, it may start them on fire
its a common problem on cheap/msi amd board, but it has happened to a few gpus
http://www.overclock.net/a/database-of-motherboard-vrm-failure-incidents
(scroll to the bottom and pick on gpu vrm failures)
However the temp you are using it at is within reference.
Since you are covered by warranty I'd either keep using it and RMA at the first sign it is not working properly or RMA it now if you can't stand the smell.
If it was defective you aren't the one who has to fix it.
Did it smell bad before you started using it? Perhaps the manfacturing chemicals were not properly cleansed from it, in which case it might be a good idea to return it for exchange with one that was properly cleaned. Not because using it would not work but rather for your health and safety.
Also does your case have proper airflow? 2+ 120mm fans would be reasonable.
Also, the default cooler (the titan cooler) it blasts the heat out the back of the case. Is it going to be an issue that it's blasting the really warm air at my wall when I game? (The wall is just regular drywall/paint.)
Edit: I have a well ventilated case, but no secondary fans installed currently. The room I'm in however has poor ventilation and can reach like 80F ambient temp after a few hours of gaming.
I don't think blasting warm air at the wall will be a problem. So long as it's not hot enough to make a hole in the wall, you should be fine :p