I would go into the BIOS and set timings, clock speeds, and multiplier to where they *should* default at. I'm not sure what they all would be so look that up. Once you are setup so that everything is how it should be on stock (sans the Asus EZ-OC feature or whatever they have [They have had it for a while. I have an old P5Q-?? in a machine that has the same feature.] I suppose it's nice for people with more money than knowledge but, If you want to overclock, you should KNOW what you are doing. not rely on the board to make the decisions for you. But Asus does it because it sells, can't blame them, and I keep buying their boards...except I know how to configure it to OC :S)
I wouldn't water cool but that is more out of inexperience than knowledge. I have never had the opportunity to watercool a rig, don't have much of an interest, so I can't speak on that front and argue a valid reason one way or the other. Water Cooling experts, please share your experience and knowledge! Best I can say to you though is, if you have the budget, it would be a great learning experience. I started working in servers instead of water cooling. Invested my money there and it was worth it for me but for others, see what happens.
I do have to mention I am intrigued by your rendering. To the guy pestering about Prime95 vs. rendering, STOP. Rendering will produce much more draw and heat on the processor than those tests. That is because there is the variable of unknown in the rendering jobs whereas Prime95 has a pattern. The temps may get close, but rendering will blow prime out of the water in usage and load any day of the week. Yes, they may both appear to be using 100%, Rendering bill stay more constant longer. Most of the time anyway. (I used to work with a guy doing animation and such in 3DStudio Max and it was hella intense on the proc. Prime95 was nothing compared to all night rendering jobs)
Thermalpaste note: Antec Formula 5 is a decent compund too. I would rate it a bit less than Arctic Silver but not enough to buy it instead of using what you've got.
I've heard good things about the Corsair Hydro coolers. ( H50 | H60 | H70 | H80) But they are a bit spendy. They are a mid-ground between water-cooling and air cooling. May want to take a look at them. I saw temps drop 5+ degrees over a V6 similar style cooler.