Just a question: has this package been built by another student before you then disassembled, or was it new factory wrapped parts? Asking because someone might have been playing with BIOS settings on board, which would be another reason to properly reset the CMOS.

You said you have hard drive connected. I take it then the system is booting properly into BIOS setup screen now?

I have a USB 56 port and a USB 78 port does it matter which one it goes into?
No. I use them in order just to keep things uniform, but it does not matter. In case you haven't guessed it, the connectors are for USB ports 5&6, the other for ports 7&8. 1-4 are on rear MB panel.

... I might of did wrong was inserting the chipset into the CPU socket.
CPU has a small triangle in one corner for orientation: also notches along the edge. If you did not use one of nihil's big hammers it should only be able to go in one way.
I used thermal paste on the smooth side, not he circuit board side
The thermal paste does go between the CPU and the heat sink. It is meant to fill imperfections in the metals to make conducting heat more efficient for the heat sink. The fan then cools the heat sink.
Thermal paste on the pin side would short the CPU.

RESET WIRES ARE BLUE AND WHITE? Which one is the ground wire?

Power SW WIRES ORANGE AND WHITE WHICH ONE IS THE GROUND WIRE?
Since white is common to both, I would go with white as negative.