Hello there, long time lurker here. (Since ~2004)
Apologies for arriving late to the party but here's some random musing.
I have a theory why direct peltier mounting to the CPU will basically guarantee a "fail".
1) Peltiers don't have actual "cold" & "hot" sides.
The way you pump the power in is what determines the cold & hot side.
2) Peltiers are also generators that convert heat differentials into electricity.
3) One would pump electricity to the cooler in a way that cools the CPU side while cooling the "hot" side of the peltier.
4) CPUs get very hot, very quickly. (Hot enough to cook actually http://www.youtube.com/watch?v=7uBNCN6v_gk)
Putting those together makes it easy to see why it fails:
A) System starts at ambient temp. (Both "hot" & "cold" sides are at equal temps)
You set up the rig & turn on the system.
Peltier is now cooling the CPU.
B) CPU quickly generates massive amount of heat.
Peltier now sees the CPU as the hot side & the coolant side as the cold side.
C) Peltier starts generating a large electrical current >>counter<< to the power you're attempting to pump in = terribad efficiency while CPU continues to heat up further going against the input.
4Ryan6's set up circumvents this issue by working with the peltier rather than against it by actually having the cold & hot side in the way we want it rather than flipping it with a direct CPU mounted setup. (By allowing the water to dissipate the heat to a level the peltiers can manage, thus minimizing the counter current).
Or in other words:
4Ryan6's setup = "Full-Power Super Saiyan"
http://www.youtube.com/watch?v=xGsUN4do5mE
Direct CPU mount = "Ultra Super Saiyan"
http://www.youtube.com/watch?v=0J_u97yaJEQ