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I installed this utility from Intel and as the title states, the utility shows the "expected" CPU speed is 2.67 ghz on this processor, however, it is "reporting" at 1.59 ghz. I'm not sure whats causing this because the two speeds should match. I have already done an RMA for a new processor with the same results. I've tried various MB bios settings but nothing has helped. I'm using a Gigabyte GA-EX58-UD3R MB. Any input would be great. Thank you.

Turn off (disable) CPU EIST Fuction in BIOS. It's under Advanced CPU Features.
EIST is the same as SpeedStep; it varies the CPU multiplier and vCore according to cpu load.
Skip

You say drops to 1.4ghz when what, nothing is happening on your computer? That's suppose to happen to save power. It will use the 2.6ghz when it needs it. There is no reason to disable this feature unless you are overclocking.
Iron Sharpens Iron.

I understand the power saving feature. The Intel Utility is designed to bypass this feature as it fully pegs the cpu, thus the cpu is supposed to be operating at full capacity.

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