We all know that many electronic components (particularly CPUs/GPUs) produce a lot of thermal energy (heat); this must in some way be dissipated to the ambient air; this is traditionally achieved through a combination of fans/heatsinks, the heatsinks serving to provide a larger contact area with the air to increase the amount of heat that can be transferred while the fans create air movement to result in a more efficient heat transfer process.
ZALMAN Reserator XT BK Black Reserator

Starting @ $450
In more recent years (relatively speaking) we've seen the advent of chips with higher thermal loads, requiring larger heatsinks and more airflow. For this reason we've seen a lot more (and larger) heatpipe coolers on the market as they have significantly more surface area than the stock coolers; these coolers are often very heavy/bulky and can get in the way in the case and in some cases stress the motherboard in such a way that it could cause damage to the motherboard.
Thermaltake CL-W0121 2U Drive Bay

Starting @$100
Watercooling then becomes a very viable option since water is very good at absorbing heat and can do so with a very low temperature change for a given amount of heat. The fact that water is a fluid makes it possible to physically move the heat away from the source and transfer the water to a more convenient location for dissipating the heat, namely the radiator. Since the radiator does not have to be physically attached to the heat source (only by means of tubing for the water to flow through), the surface area for heat transfer can be significantly larger than what could be achieved with a sink mounted on top of the CPU. This allows a lot more heat to be more effectively transferred from the CPU to the ambient air and thus also allow for lower idle and (more importantly) load temps than what can be obtained by means of air cooling.
ZALMAN Reserator XT BK Black Reserator

Starting @ $450
What brands to consider/avoid
One word of warning for newbs is to avoid cheap kits from companies such as Koolance, Zalman and Thermaltake; they are crap and at best offer the same performance of a good heatpipe cooler. This can be attributed to poor block/radiator design making them less effective at transferring the heat to/from the water. Another reason to avoid these companies is that they generally use aluminum in their block tops and/or radiators, which can lead to galvanic corrosion between the copper in the bases of the blocks and the aluminum.
The companies I consider to produce the best watercooling components are DangerDen, EK-Waterblocks, D-Tek, Swiftech, Thermochill, Hardware Labs, and LIANG. Only current exception is the Swiftech Apogee GTX CPU waterblock and the Swiftech Stealth VGA waterblock as they have aluminum tops; however, for the Apogee GTX a replacement copper top is available.
READ MORE!
Starting @ $450
In more recent years (relatively speaking) we've seen the advent of chips with higher thermal loads, requiring larger heatsinks and more airflow. For this reason we've seen a lot more (and larger) heatpipe coolers on the market as they have significantly more surface area than the stock coolers; these coolers are often very heavy/bulky and can get in the way in the case and in some cases stress the motherboard in such a way that it could cause damage to the motherboard.
Thermaltake CL-W0121 2U Drive Bay
Starting @$100
Watercooling then becomes a very viable option since water is very good at absorbing heat and can do so with a very low temperature change for a given amount of heat. The fact that water is a fluid makes it possible to physically move the heat away from the source and transfer the water to a more convenient location for dissipating the heat, namely the radiator. Since the radiator does not have to be physically attached to the heat source (only by means of tubing for the water to flow through), the surface area for heat transfer can be significantly larger than what could be achieved with a sink mounted on top of the CPU. This allows a lot more heat to be more effectively transferred from the CPU to the ambient air and thus also allow for lower idle and (more importantly) load temps than what can be obtained by means of air cooling.
ZALMAN Reserator XT BK Black Reserator
Starting @ $450
What brands to consider/avoid
One word of warning for newbs is to avoid cheap kits from companies such as Koolance, Zalman and Thermaltake; they are crap and at best offer the same performance of a good heatpipe cooler. This can be attributed to poor block/radiator design making them less effective at transferring the heat to/from the water. Another reason to avoid these companies is that they generally use aluminum in their block tops and/or radiators, which can lead to galvanic corrosion between the copper in the bases of the blocks and the aluminum.
The companies I consider to produce the best watercooling components are DangerDen, EK-Waterblocks, D-Tek, Swiftech, Thermochill, Hardware Labs, and LIANG. Only current exception is the Swiftech Apogee GTX CPU waterblock and the Swiftech Stealth VGA waterblock as they have aluminum tops; however, for the Apogee GTX a replacement copper top is available.
READ MORE!