Im installing an AMD Athlon X2 4200+ and the heatsink comes with some sort of heat transfer material on it... it looks like thermal tape, which I heard was not as effective as thermal paste. I didn't want to actually touch the paste/tape, so I was wondering if
A) Someone could tell me if they package the processor w/ paste or tape and
B) If it is tape, should I buy some paste for it, or not worry about it...

Welcome to PCHF deranjer!

here is a pic of a thermal pad,



Not sure if the 4200 has one though.

And unless you really want to change, thermal pads are fairly efficient.

Hmmmm, the one on my heatsink doesn't look much like that... I just intalled the heatsink, and I noticed that the paste/pad didn't smear at all, which made me think it is a thermal pad of some sort... and if it doesn't matter that much, good...
I know you should reapply thermal paste everytime you take off the heatsink, but does the same thing apply for thermal pads?

im not sure about that, a tech team member should be able to answer that soon. I think most stock cpu manufacturer processors nowadays come with thermal pad on.

The thing about these things -- is if you should ever need to pull your CPU/heatsink/fan apart for any reason... these things are a pain to clean off. Once heated -- they melt and goop things up completely.

I would spring for some Arctic Silver. It is easier to use/does not cost much (get a small tube)/comes off much easier/tranfers heat far better than pads/white silicon goop.

The Heatsink Guide - Case Cooling

Thats also an idea i see, if you really wanted better cooling you could also get an aftermarket heatsink.