They've got all the instructions at arcticsilver.com. But Anyway:
You put a little amount on the ceramic part of your chip (In the middle), then spread it using a razor blade or credit card. Put your hsf on top of it (w/o twisting!!!), attach it to your mobo, and viola! You are done! Good Luck.
"If you teach a child to read, then he or her will be able to pass a literacy test" - George W.