I usually put a glob in the middle and take a business card and spread it around the top of the processor to get a nice even coat that's not very thick and I've never had a problem. I believe if you use way to much, you won't get solid contact between the heat spreader and the heat sink and it could be less effective and if it leaks out the side, it could potentially short somethign out.
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Andy - Reinstated
Hybrid Forum Moderator
'06 Subaru Legacy Spec B - Stock, for now
'98 Civic EX - CTR headlights and grill, Kosei K1's, for sale
'90 240SX - SR20DET that will never get installed, project car.