Never Done it

:) It's surprisingly easy, actually. Removing the heatsink, lift the lever, CPU pops out. Insert the new CPU, apply thermal paste, replace heatsink, done!

Make sure you consult a proper manual for your motherboard if possible, because they can be more detailed in the whole process. But don't worry, you'll be just fine.
 
Make sure not to force the processor in. If it doesnt want to go in, you're doing something wrong.
 
Stock heatsinks have a small patch of pre-applied thermal paste

Remove the motherboard from the case first. It makes the job much easier
 
You should get your own thermal grease. Its usually better quality, and you can apply as needed. Just dab some on the processor, and spread it over the entire surface. Make sure you dont have too much excess.
 
Be careful about smearing the paste around. Even tiny air bubbles between the processor and the heat sink is just asking for trouble. I've always just put a dab in the middle and seated the heat sink. The paste will spread quite well on its own. It takes a lot less paste than some people think, make sure you read the directions before doing it.
 
I dont have 20$. And I dont have the processor either, so I see this as a good way to get something for free or close to it.
 
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