My processor was mounted at the store, and the heat goo that came was only on the heatsink. Is it supposed to touch both the heatsink and the processor? I need to know because the processor burned out and if it's their fault I want my damn warranty coverage! Thanks! :P

Just to answer any questions pre-emptively, I was playing Diablo 2 and the computer froze, I turned it off, when I restarted it nothing would come on the screen, then I took it apart and looked at everything, then put it back together and turned it on and it worked, I started playing again and it froze, beeped when I restarted and would never boot again... diagnostic LED on the back said the processor may be damaged, looked at it and it was burned. Wish it would have beeped BEFORE it was too late... I sure hope it was the thermal goo's fault because I know little about power sources... hehe.

When thermal paste is applied, a paper thin layer is spread on the CPU core, then the HSF is installed. Most people don't apply paste to the bottom of the heatsink itself. However, Arctic Silver recommends rubbing a little on the bottom of the heatsink using your finger thru a plastic bag, then the excess should be removed before seating the heatsink on the core. You said you took it apart? Sounds to me like you just blew the warranty by tampering with it yourself. Did you take the HSF (heatsink/fan) off the CPU? If so, you may have reinstalled it incorrectly & either cracked the CPU core, or you didn't reseat the heatsink properly & the CPU overheated. One other thing...once a HSF is removed, the old thermal paste should be completely cleaned off & a fresh layer should be applied.

"heat goo that came was only on the heatsink" if the heatsink was up against the cpu and then you took it off, the goo will sometimes stick only to the heatsink.

Could he mean a thermal pad?

I think he did mean thermal pad and I think he chipped the CPU when he took the HSF and then reinstalled it. Skunkdave, if your computer is under warranty, I'd return it to the vendor. I chipped a CPU doing what you did and my vendor replaced the CPU for the price of shipping ($14).