I know this is COMPLETELY unrelated. But, it would be a better idea to not get watercooling, and go for a Thermalright Ultra 120, and a new E8500 from Specialtech. Water cooling isn't worth the hassle, first of all, and second of all, there is point spending £150+ on something, when you can spend that money on something that is less hassle and faster.
As for frying your processor, that really is only going to happen if you run too much voltage through it (through yours it would be around 1.5V on water, for the 45nm chips it would be around 1.375V as a good stopping point, as they disintigrate after 1.4V, whether you have obscene heat or not).