Alright. Before I thought it had to be put all along the vents, but after reading the official guide the last G4 iMac 17" it looks like just 2 pads. How should I take off the old paste?

Its the white paste and can get it pretty cheap at radio shack.

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I'll have to look. I still have some Arctic Silver from the Cube's processor install. Do you remember the name of the paste?