Well, Artic Silver is a little different than regular thermal paste. Artic Silver must be applied very very thin in comparison.
First, make sure you clean the CPU and Heatsink with Isopropyl alcohol to remove any residue. Once it?s dry, you can cut the blister pack and start applying a dab of grease on the CPU. Don't use your finger to spread it, instead use the tip of the packet or the edge of a credit card to spread it directly on the CPU die (the small center square on the CPU chip).
Thermal paste/grease should be applied thin, but thick enough so you don't see any metal of the CPU die showing through the grease. In addition, some people like to apply some grease to the HS and ?squeegee? it off with a razor blade or credit card. I guess this can help fill in any micro hills and valleys.
Make sure you align the HS to the center of the CPU and make a flat contact when you ready to attach it to the motherboard. This will minimize the amount of thermo grease from moving around and protect your CPU from cracking. You never want to install the HS on an angle since this can be too much stress for the CPU core (especially Intel?s FC-PGA and AMD?s CPUs. Good luck. If you want pics of an installation, just do a web search. There?s plenty of article on this stuff.
Good luck!