1 – Did your processor have the blue processor latch bracket attached?
Yes.
2 – If you were installing the CPU w/ Blue bracket directly into the SysBoard CPU socket and not sliding into the metal lid bracket first, how did you get the metal lid to close down with the heatsink
Quite easily, unfortunately.
In attempting to replicate the 207 Memory Init Post error with Proc 2 (Dimm 1 and 4), the server would not boot if all the processor assembly (cpu, heatsink) were properly installed.
It booted, I also found it weird that not all of the pins of the CPU were making a connection but still it would boot.