I just used some alcohol and q tips to clean off the old TIM. Then i used my finger with sryan wrap to apply a nice thin layer of TIM.
Thought it wasn't conductive, looks to be so though. I just did this to my 9500gt and i did manage to get some of it on the surrounding areas of the gpu.
Stolen form artic website.
Not Electrically Conductive:
Arctic Silver 5 was formulated to conduct heat, not electricity.
(While much safer than electrically conductive silver and copper greases, Arctic Silver 5 should be kept away from electrical traces, pins, and leads. While it is not electrically conductive, the compound is very slightly capacitive and could potentially cause problems if it bridges two close-proximity electrical paths.)