That is thermal paste. It transfers heat to from the processor to the heatsink 
(I think you knew that). Do you have a URL where I could see the picture with 
the thermal paste?
On May 11, 2011, at 3:13 PM, Roger Dickinson wrote:

> I'm about to exchange the 24-fin aluminium heatsink in a G4 MDD dual
> 1.25 GHz (2002) for the more efficient copper heatsink from the 1.42
> GHz MDD. One thing puzzles me, though : the bottom of the copper
> heatsink I have has some sort of gloop on each side of the heat pipe,
> just like that shown in the MDD's service manual, but the one pictured
> in the xlr8yourmac.com article on doing this swap
> (<http://www.xlr8yourmac.com/systems/MDD_copper_heatsink_swap/mdd_copper_heatsink_swap.html>)
> has none. I am sure the mod. article is accurate, so is this stuff not
> really necessary? Anybody know why it's present on some but apparently
> not all heatsinks of this type?

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