I have som temperature problems with my CPU, and I'm thinking about getting some Arctic Silver II. I have no idea how it works, since I'm fairly new to this. I have a AMD XP1700+ and a Dr. Thermal T-V77L CPU cooler.

Should I put it on so that the heatsink comes in contact with the CPU?
Shuld I put it on both the heatsink and the CPU core?

Any other things I have to be aware of?