The best method I've ever found for applying AS3 - I consider it better than AS's official instructions.
You will need:
1. Clean CPU core. (obviously.)
2. Clean HSF surface. (again.)
3. Some AS3 or white gunk or FlavorOfTheMoment. (Really, it doesn't matter that much.
4. Some rigid cellophane (clear plastic), like the sort that is shrunk around cigarette packages. You'll want several pieces (maybe 3 - 5) sized at least 1" square.
Disclaimer: If your CPU and/or HSF are scratched, this won't work well.
Dab the tiniest cutest little splotch of AS3 on the clean sticker-free smudge-free impurity-free HSF surface. By tiniest, I mean about 1/4 of a grain of rice.
Take a piece of the cellophane and gently transfer a little of the thermal compound onto it. (By pressing it into the dab.)
Place the now smeared cellophane against the cpu core, and paint the surface of the core by using alternating circle strokes. WAX ON, WAX OFF! Just like that. Get it in good, all the nooks and crannies. Use the same piece of cellophane to even the coating out, by starting at one end of the cpu core, and painting strokes, all in the same direction, moving to the other end.
You should be left with an even translucent haze of AS3 on the core. If you can see through it, GREAT. Stop with the core. If you can't see through it, you put too much on. Take clean cellophane and continue doing the 'even painting smoothing' technique until you can see through the haze. You'll be left with a lot of silver cellophane if you're using AS3.
Anyway, on to the HSF. Take some new cellophane, and smear the dab that's left all over, in alternating waxonwaxoff circles, into the HSF surface. Yadayadayada nooks and crannies etc. Thin this layer out the same way.
Remember - thermal compound has ONE purpose: It is designed to replace the air that would exist between a CPU core and a heatsink. That's really a small amount of air, so you really only need a small amount of thermal compound.
Anyway, install the HSF, and you're ready to go. Doing it this way has resulted in SIGNIFICANTLY lower temperatures for me than any other method I've ever tried or seen.