Thanks guys, I figured as much.  When you say replace the pads do you mean the torn ones only (circled, etc) or all of the large-ish squares also?  The square/large pads seem ok visually.

As for sourcing the pads, do you recommend anything in particular?  Newegg (my toystore of choice) only returns this CPU thermal pad (http://www.newegg.com/Product/Product.aspx?Item=N82E16835230030).

Also the TIM that I removed was quite thick (1mm+) compared to what I've read here.  Is that typically what you see when regreasing a factory/refurb?