Did I ever tell you that Windows 7 doesn't work well on P4-HT ? I also think you should work with Windows 7.I searched on the Net and found so many positive Reviews about windows 7 on Pentium 4. I think it is OK to use 7 on Pentium 4.
Anyway, what I have told you is not to expect the performance of a multi-core CPU from a single-core one. So you need to expect high CPU loads as now which will reduce overall performance.
It will not get damaged as long as the CPU doesn't go beyond the maximum temperature. So this is basically depending on the heat-sink and fan. If those are working perfectly, the BIOS will not beep the warning alarm.If some thing always use more CPU power isn't it Good for CPU? i mean will my CPU damaged?
Can you hear the CPU fan speed up when the CPU goes to higher loads and speed down for lower loads? If this is the case, you don't have to worry at all. If it is not, then you will have to depend on the BIOS alarm.
In simple terms, if you can't hear the BIOS warning alarm for CPU temp, you don't have to worry about CPU load.