if your main objective is to get something quiet, then you don't need to watercool at all.
if you're going for extreme overclocking, then by all means go water.
the negatives for water are plenty. i mean if you're in and out of your box 24-7, then okay. but for the rest of us, this should suffice...
1. ONE case with 120mm exhaust/intake and good airflow. slk3700, or anything that resembles it.
2. TWO 120mm fans, (panaflo L1A or whatever it's called comes to mind). use voltage trick take them from 12 to 7 volts. place at front and rear.
3. ONE quiet powersupply 350-400W. anything over is overkill, because you're not watercooling anyway. seasonic, zalman, nexxus brands come to mind.
4. ONE quiet cpu HSF. zalman cnps 7000A-AlCu or SLK900 with 92mm panaflo fan.
5. QUIET harddrives. Seagate Barracuda 7200.7 or the new Samsungs. Both equally quiet. you won't need cooling on these because an slk3700 case or similar will have plenty of airflow. if you want, you can add the zalman passive cooling thing.
6. QUIET vga cooler. Zalman's VGA cooler is most quiet, but the ARCTIC COOLING fan will probably be best since it takes heat out of your case.
all in all, that leaves you with 4-5 fans maximum. 1 exhaust, 1 intake, 1 PSU, 1 cpu/HSF, 1 GPU (if you don't go with the zalman heatpipe.) all virtually inaudible.
P.S. if you've got a northbridge fan, then get rid of that with a zalman northbridge heatsink.
THAT'S IT!!! you've got a really freakin quiet computer. it'll be just as quiet as that water cooling setup in that link i guarantee.