As far as I can tell, Ktemperature monitors system temp, which is not CPU temp. On my setup, THRM returns a temp of 22 Celsius. My CPU temp is 38 Celsius on a different sensor.
Anyway, back to your question: if you compiled THRM into the kernel, you should be able to see if it's being loaded in /var/log/dmesg. Look for a line something like
Code:
ACPI: Thermal Zone [THRM] (22 C)
If it's not there, check in your kernel config (/usr/src/<kernel>/.config) in the ACPI section for a line like
Code:
CONFIG_ACPI_THERMAL
Check what the option is (m,y, or not set). I know you said you compiled it in, but it's always best to troubleshoot from the bottom up