drstitson,
They are failsafe in that respect, except they are Boron, not Carbon, I believe (Carbon is used to slow the neutrons because slower neutrons are better at actually creating the next fissile reaction).
Dropping in all the attenuator rods will stop the fissile reaction (mostly, but not the simple radioactive decay processs which generates a considerable amount of heat - like the Earth is being kept hot by Radium, etc decay energy?) It will be that heat which will still overheat these rods which are sub-critical, but nevertheless very radioactive. The spent rods rods are apparently boiling the cooling water in the pond where they are initially stored (while the short lived reactor-produced isotopes decay). It is all the simple radioactive decay processes causing the initial overheating.
If the rods melt, then that is another problem, altogether. China Syndrome and all that, a really ugly uncontrollable mess, not that it is not a really ugly mess already!
Regards, RAB