I dont think this is a bad idea, just a poorly thought out one. It needs either the intakes or the outlets from the rad flowing over the processors, otherwise it is going to be hot.
now i think the point of this was not having any conventional airflow or passive cooling. if i read correctly there is no radiator in his setup, the oil doesnt even flow right now until he gets his pump which he expected to get today. when he installs the pump it will pump the oil into a 45gallon drum which he buried in his back yard, and the ground will be the cooling element (the way he envisions it working). there is no rad or conventional heat exchanger. im not sure what the heat capacity is of mineral oil, but it will not heat up very quickly, so there probably wont be a problem once he gets his flow going - especially if you consider the volume of oil the processor would have to warm up and the speed with which the entire volume of case oil will be refreshed with ground oil. i find it hard to say that wasnt well thought out.
cyberey66: further down the page when i read he stated that the fans still turn at some really slow rpm that the sensors do not pick up, so they create minimal flow at best. as for the metal box, i think that is why he used a 45 gallon metal drum, and if you are going to have the guts to go submerged, then you might as well have a clear case to remind yourself. besides, when he gets his flow going, i would think the oil will be getting actively refreshed much faster than the heat will passively dissipate from the components to the sides of the case.
advans13: i dont believe mineral oil has to be recycled, am i wrong? however digging a hole for your resevoir in your backyard is a little out there.
just some more of my thoughts on it. the more i think about it, the cooler it is. at first i wasnt very impressed, but except for my expectation of a short lifespan of the system (i would expect less than a year), i think its awesome - especially for someone who isnt overclocking. its still a lot of work though for not great temps.