well the water will not be any cooler than the room temp unless you "freeze" it somehow. A peltier will continually cool the water through the water block so that would do it.
Condensation only occurs on the outside of a membrane when the inside is cooler than outside, and oustised water vapors solidify (condense) on that membrane. Water cooling by itself, will not produce condensation.
I have had water cooling for a while now with no condensation (obviously) anywhere on the water line, and 1 water pump.
The main thing (that i didnt realize how important it was until after I got my water cooling kit together) is a STRONG water pump. Over 200 gph i would say can make up for a smaller radiator and longer lines (in my case the water reservoir and radiator and pump is outside the case so all the lines come in and out). The pump wont stop.....its supposed to run water trhough aquariums or water fountains for years, non stop. I never even turn it off. Dont get a pump with under 200 gph output. 300 gph would be even better. A good pump meant 10 C in my case so keep that in mind. You can buy water pumps from your local pet shops. Call all of them and ask for acquarium water pumps with the desired gph. See which one is cheaper.
If you have a cold room (25 C ~75 F) you might not even need fans on the radiator. That depends on the type of processor you have to cool also(Athlon 1.4 vs XP series). I dont put the AC on too much in my appt. (college is expensive, lol) so its very hot inside during summer. During winter, i dont even use a fan on the radiator.
I hope this helps.
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