That sounds more like DARE style bullshit to justify getting angry at people stealing formula. I've definitely heard of baby powder or baby laxative but that's because they react similar to coke by dissolving in water like blow or acting like a numbing agent. Baby formula doesn't numb and it gets milky in water.
It makes no sense from a economic stand point either. People cut drugs to make more money. Most of the shit they use costs next to nothing, isn't watched and definitely isn't locked up.
Don't put WD-40 on the pins. I'd start by pulling out the sicks and cleaning the pins off with a q-tip and iso alcohol. Probably a good idea to clean out the slots now too.
Get Memtest64 and run it with both sticks. If it fails try it with each one by itself. If a stick doesn't past the test you should be able to get a new one under warrenty. Just start an RMA request and say it failed memtest64.
If its not your ram then its probably a poorly seated CPU. Remove the cooler, clean the paste off and carefully put the cooler back on without over tightening it, or tightening one side more than the other.