Your not going to like this one bit but heres the way I do it.
First, wipe up as much of the excess with some toilet paper. Try to smear as little as possible on the purple portion of the CPU. This is where it gets real difficult to get off.
Second, get and old toothbrush and give the brushes a good shot of WD-40. Now take the brush and brush the WD-40 onto the cpu in the area where the Arctic Silver needs to be removed. Continue brushing until the Arctic Silver "disappears". Try to stay away from the four rubber pads as the WD-40 breaks down the adhesive in the pads. If this happens and a pad comes off, get out the super glue.
Third, if you have any acetone (high strength nail polish remover is normally pure acetone) use it in this step. If not go to the local Walgreens and ask one of those sweet things in the makeup department to help you find some 100% pure Acetone Nail Polish Remover. If your in luck, it'll be on the bottom shelf. It'll sell for about $2 to $3 for a 16 oz bottle. You will find uses for this stuff all around the house so do not hesitate to buy the big bottle. Apply the acetone to the cpu where you applied the WD-40 using a cotton ball. Do not apply too much at one time - several passes works best. The stuff will evaporate ina few seconds anyway if you use relatively light coats.
Fourth, allow the CPU to dry out fully prior to re-applying the arctic silver. Once its dry, apply a tiny amount onto the top of the CPU die. Get a ziplok bag and stick your hand in it with your index finger sticking in one of the corners of the bag. USe the index finger to smooth out the Arctic Silver using as thin a coat as possible but making sure you have completely covered the top of the die.
Fifth, re-apply your cleanuped heatsink and you should be good to go.