Ok, here's the straight and skinny...
The thermal pads work OK... but just ok, no better.
The problem with them is the adhesive used to hold them to the heat sink. It's like the sticky side of scotch tape, has thickness, remains between the heatsink and cpu and has <i>lousy</i> thermal characteristics. Add to this that when you first install a heatsink with the thermal pad, there will be a few seconds in which the stuff actually insulates, the CPU gets hot enough to melt the pad and seat itself against the heatsink for the pads to work. An AMD CPU has about 5 seconds to live without a heatsink... not a risk I like taking.
I always remove them and use heat sink grease instead.
The argument between Arctic Silver and everyone else is all about one or two degrees. Given the cost of the stuff, it's better, but not a whole raving lot better, as some people claim. In my opinion the minor difference is not worth the expense and, in my area, that stuff is expeeeennnnnsssssivvvvve.
Any heatsink grease is going to perform well enough and they will all outperform those idiotic rubber pads.
I strongly suggest removing the rubber pads with a plastic scraper (the edge of a credit card works great) and then cleaning both hetsink and CPU with isopropal (rubbing) alcohol, hospital clean, before applying grease and installing the heatsink.
If you want instructions for the proper application of thermal grease, you can find them here:
<A HREF="http://www.arcticsilver.com/arctic_silver_instructions.htm" target="_new">http://www.arcticsilver.com/arctic_silver_instructions.htm</A>
(use the same method no matter what grease you use)
--->It ain't better if it don't work<---