Man, I have no clue what key I just pressed but all that I typed out here was wiped out and for some ridiculous reason, CF was replaced with my Hotmail site. Strange. Don't you guys just hate it when that happens? It's like accidently bumping the forward or back button on your mouse and boom, everything you typed out dissapears on you.
Anyways, back to the topic. It looks really nast under there. Regardless if it's actually fried or not, try again. Clean off the bottom of that heatsink and the top of the processor with rubbing alcohol or glass cleaner (lol, reminds me of that movie, "My big fat Greek Wedding" or something like that) and use some cloth or lint free material if you have any. Clean it off good so no traces are left behind. Then reapply the thermal grease again. If your PC doesn't come on after that, you can suspect the CPU is gone.