ElectroBlaster, are you saying you use a card to apply a layer, instead of the pea and press method?
If I remember my gpu had it coming out the sides a bit too of the old stuff. Suppose I should have put a bigger dollop on, didn't want to go too mad.
I have the Arctic Cooling Freezer 7 Pro cpu cooler, and that comes with mx-2 pre-applied which seems to do a great job.
It has had long enough to cook in on the gpu now, I don't think I put enough on.
Worth getting the mx-3 over the mx-2 i think for better cooling ability, esp for hot gpu - you can read the descriptions of both on the ocuk store descriptions.
Oh yeah, if you're planning to do oven method, read here (what I did)
http://forums.overclockers.co.uk/showpost.php?p=16065513&postcount=13
Be prepared for the fumes and smell, need very good ventilation, and clean oven after if you're concerned, never cleaned mine after though. It's a very short term fix, and I think once a card is on the way out there's no turning back, especially if there's a fault with the vram - unless you're lucky it's something minor with the soldering.