You have to cool the peltier. Say you have 100 watts from the CPU. The Pelt will pull the 100 watts heat from the CPU, but due to thermal loss etc you'll have 150 watts at the hot side of the Pelt. Meaning you your CPU will be cooler, but now you have to cool 150 watts total or the smoke will come out, and it will.
Pelts need $100++ of watercooling to be effective and have lost favor in the last few years. Folks needing to get really low temps have moved to phase change, meaning a refridgerator cooler and such. Not for the noob in any any way.
Watercooling starting in the +$200 range is your next best if you have done the max in air cooling.
I'll steer you to some more technical links, please spend a few days (DAYS) reading posts, searching, learning.
Great place, not wayyy over the top with uber WC guys.
http://www.ocforums.com/index.php
Uber place, owned by one of the worls winning OC guys in the world. Not a place to post or ask questions by noobs, but an awesome place to learn.
http://www.xtremesystems.org/forums/
Another good place to learn
http://www.overclock.net/water-cooling/
The GURU of independant testing, worshipped by many.
http://www.martinsliquidlab.com/
Ya got a TON to learn, take your time, it's a hobby, not a job. And a billion questions from uneducated peeps will get ignored at a lot of the places I linked ya to. Learn, read, take your time.
