Note the temps I cite are with a KT7A-R.  I have recently switched to a KK266-R Plus but the temps are different due to the change in socket thermistor and BIOS interpretation of the thermistors data.  Also with the Iwill, I have no idea what the temps were before pelts.
Running at 1.6 GHz @ 2.04 volts my idle temps were at or 1C below ambient, full load was about 14C above ambient.  The cooling system consisted of a Danger Den Maze 2 (original version), Danner Mag 7 and the bong cooler in the pictures below.  With dual 120 watt pelts running at 22 volts in the same system using the Maze 2.2 (original version) my Bird runs at 1718 MHz @ 2.1 volts.  Idle temps are 42C below ambient at idle and about 8C to 9C below ambient at full load.
Coat your the inside of the socket, area surrounding the socket and the back of the board behind the socket with your choice of conformal coating and insulate with neoprene.  Remove the feet from you CPU and coat the exposed circuitry with conformal coating.  Don't forget the dielectric grease in the pin holes of the ZIF socket.  You may want to cut a thin strip of neoprene to cover the locking lever of the ZIF socket.  This is not shown in any of the following photos.
Insulated Board
Make a blanket out of 1/16" neoprene to cover the whole package.
CPU Blanket
If you are using one pelt, you will need to make a neoprene gasket to surround the pelt between the block and cold plate.  With dual pelts, you can just run a bead of silicone around the pelts between the block and cold plate.  Then surround the coldplate with neoprene.  I found it easier to insulate the whole block and cold plate as a package.  Note the 1/16" CPU blanket in the previous photo is also in the photo below.  DO NOT use two sheets of 1/16" neoprene.
Insulated Block/Pelt/Coldplate
The completed package with the block installed on the motherboard.
Block installed on Motherboard
For conformal coatings you can use Dow Corning CLEAR Silicone II Household Glue.  If you need to thin this for easy application with a brush, use naphtha.  The downside is it takes 24 hours to cure.  Permatex Blue will do the same job and cure in 2 hours.  If you like fast results as I do, try Aqua Seal.  With Cotal hardener or toluene it will cure in under an hour.  Aqua Seal is liquid urethane rubber and is used for repairing wetsuits and waders.  You can find it at fishing, surf and dive shops.  
Instead of a radiator I use a Bong cooler.  Disposing of around 340 watts of heat is a tough job for a radiator.
Here is a pic of the cooler (Photopoint was kind enough to crop the image)
Bong Pic
Here is a detail pic of the fans.
Bong Fans
As for cost, you don?t want to know.  A Vapochill would be cheaper but would not be anywhere near as much fun.
If I can be of any further help, please let me know.