So, I have always soldered DIP IC's and SOIC type packages.
I used the 0.71mm solder wire to join the pins.

So when soldering 64pins and 128pins etc I plan to use:
1) a hot air station (still need to buy one).
Locally I can get the Magnum 3004 hot air station
or of Ebay 852D Soldering Rework Station (Much cheaper option)

2) Solder paste Loctite HF212 500g jar
http://za.rs-online.com/web/p/solder-pastes/8329775/

My actual question is ,is this solder paste what I am meant to be using to solder the IC onto the pcb instead of the solder wire which I have always used?
And then some liquid flux to help the soldering.
I bought this solder paste before but it is more like a wax/jelly substance
http://www.mantech.co.za/ProductInfo.aspx?Item=72M4358
and it does not solder one single pin between IC and pcb.
When checking videos of soldering I see people have a grey colored solder paste but then they don't say the name of the paste they are using.

 

When soldering surface mount devices, it's best to use solder paste and a hot air tool.

For single sided boards, the paste will hold parts in place and they'll align themselves to the pads when the solder becomes molten.

Most solder paste should have flux. When mine dries out, I add more flux to make it workable again (hobby work only). Solder paste has a shelf life (mine is 6 months) and I can't see tossing it because it has dried out. I've been using the same 500g tube for years.

The consistency you want depends on how you're going to apply it. If you use a syringe, you'll need it to be "runny". Paste is better if you apply with a squeegee.

Watch your air speed on your air tool. You should probably also consider nozzles for devices with a lot of pins.

I bought this solder paste before but it is more like a wax/jelly substance
http://www.mantech.co.za/ProductInfo.aspx?Item=72M4358
and it does not solder one single pin between IC and pcb.

That's flux with a paste like consistency, not solder. Solder paste is going to be gray because it's granularized metal.