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It will help in any climate. As long as the pc will run when cooled normally, it will run better when cooled this way. All you're really doing is making the heat transfer more efficient.
Cool idea but I'd worry about the oil going rancid... cause that'd doesn't smell good. If you want to avoid rancid oil and improve your overclocking just cool the oil to refrigerator temps (not enough to have it solidify on you though). That would be some cool tech.
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