That kit has everything but the water and the time needed.
Watercooling is pretty simple. Basicly you have several parts to the setup.
1. The waterblock. Copper is better and microfin waterblocks perform better.
2. The radiator. This dissipates the heat. Heatercores from cars work better then most out there.
3. The Pump. You want a reliable pump. Ehime are generaly the best.
4. Tubing. Theres a bunch of different type ranging from vinyl like from home depot, or tygon or clearflex which is more expensive but much more flexible.
5. Fans. 120mm fans are generaly straped to the radiator. Hich cfm means more cooling, but with such fans as panaflo LIA fans, 80cfm is moved at something like 30dbl.
6. T-line or resivor. This is used for filling the system with water
Now if I were on a budget and wanted a GOOD kit, I would get the following.
1. Cathers White White mini fin 1/2inchwaterblock. $49 dtek customs
2. 1986 Chevy Chevette heater core from AUTOZONE $16.99 (needs 2x 1/2inch barbs and JBWELD to attach them to the core)
3. 1048 Ehime pump $56
4.7ft of clearflex hosing around $10-12
5. 12 hose clamps and 1 Tline $8
6. 2x panflo L1a 120mm fans, silence and performance. One for each side of the radiator. $20 used
Now this is a $160 kit that will get better performance then either mentioned above.
Just read the cooling faqs and look at people ssytems. Its a good and quiet alternative to air cooling.