Thanks jimwross, i finally got my 360 going only after doing your method.
i previously heated chips before assembling heat sink, (the same way i tend to fix the dreaded RROD, tried 3 times, xbox would boot up then the screen goes fuzzy within a couple of mins.... i was almost ready to bin it, so i gave your method one last crack put cleaned chip & heat sink,,, repasted,,, screwed back to motherbord,,, whacked my heat gun on area as you pointed out,,, let it cool down...
Then blow me down with cotton socks,,, back online playing CODMW2 for last 7 hours,,, & its still running sweet...
cheers man