The instruction reads "Thermal interface material is required for all AMD processors. use only the recommended thermal interface material for this processor (see website for list of approved material). The heat sink/fan provided with your retail AMD processor has pre-applied thermal interface material."
So I don't really have to apply EXTRA paste/grease/oil myself, right?
IMHO, they over did it from the factory (which can also build heat). Mine looked like they glued a foam-rubber pad to it. If you have any name-brand TIM (Artic-5, MX-2) laying around, I'd remove it and start over. If not, there's way more than enough thermal paste on there already.
The thermal pads are located on the heatsink itself. You can tell if there is paste by looking for any residue or square of a sheet of residue (thermal paste) on the bottom of the heatsink or top of the CPU, its really hard to miss. If you're applying new paste i'd do it in the CPU but it shouldn't matter considering you're pressing them together.