QUOTE(tfatcobra @ Mar 3 2009, 10:42 PM)

Yes Fresh thermal paste was applied, now I saw that you can mount the motherboard and heatsinks on the case itself! I was mounting the heatsinks to the motherboard like lawdawg0931 theory. I also didn't apply the credit cards peices on the ends either. I will try that. Also, do you wait 2 minutes after the 2 lights start blinking because I have been disconnecting the power after 2 minutes when the lights turn from 3 to 2 lights should i wait for another 2 minutes after the system is overheating.
How much Thermal Paste are you putting on? (I'm sure you already know) but the best way to apply it is to put around a grain of rice amount on the die, and then using your finger (inside a plastic bag) rub it all over the surface. Also, I never disconnected the Fan but just positioned it over the DVD Drive and Processor and then leave with the RROD for around 10 mins, possibly a few mins longer if needed. Then put the Fan back where it should be, try booting it to see if it boots ok and then alow it to cool down for 20 mins or so!!!
If you've already done then another question is, with the X-Clamp fitted, is there any play/movement with the Heatsinks? If there is a little movement, then the problem maybe be that when the Motherboards back in the case the bolts are slightly pushing the Heatsinks up and causing the Overheating issue.
Hope that helps.
Mark.