It depends on your system. If you can keep it cool with fans and don't mind the noise fine. But I could not keep my P-4 dual core cool enough with air and I installed a water cooling system for under $200 and it does a much much better job. For a heavy duty gamer, for example, its a necessity.
1. water cooling controls temps far better than air cooling
2. water cooling is much quieter than air cooling
3. you don't use plain water, you use a non-conductive liquid such as distilled water, deionized water, or other non-conductive coolant. if you build it right it won't leak, but if it does it still won't damage anything.
4. they are not hard to build yourself, and you can build one for about $50 USD, no need to spend $200-$300
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