I have recently installed The gigabyte 'GWUM' health utility that come with my motherboard. When i viewed the system health i noticed that the system fan was running at 0 RPM? The program also showed a 'Case open' message too. Is the program reading my system wrong or is my fan not working?

I heard that GWUM is not a very good utility, but I can't confirm this. Perhaps it doesn't work properly.
But you should easily be able to check it yourself. Do you hear the fan running? Or open the case and watch it.

You need a 3-pin fan, and it must be connected to one of the 3-pin fan headers on your mainboard for fan speed detection to work. Make sure you connect to the correct header, as this is what is being monitored by your software.

i didnt actualy put this computer together. Is it possible the guy in the shop didnt put it together properly?

also ive read that in the bios you can reset the system fan status but the problem is when i hit <del> when i power up my computer it askes for a password which i didnt set.. any way of getting around this?

my current temps. are realy bad.
cpu temp = 68^0 C
system temp = 46^0 (does this mean it is working)?

I read these from GWUM and verified them for easy tune 4.
the funny thing is GWUM says theres no problem by easytune 4 won't shut up about it.

Reset your CMOS to reset the password. This will also require that you go through your CMOS settings afterwards to optimise your settings. Alternatively, phone up the guy at the shop and ask him what the password is. I wouldn't worry about your fan rpm reading as maybe you don't have a 3-pin fan fitted. Check the back of your case to see if the fan is working, or if one has even been fitted. Some cases will not have an extra fan fitted, relying instead on the PSU fan for cooling.