High end air coolers beat that cooling system you mentioned... both in terms of performance and noise levels... and that doesn't even take into consideration the (remote) possibility of a leak. Overall it looked fine.
Get a 955BE; it should overclock to 965 levels, and costs less.
I would choose Gigabyte over MSI any day of the week.
Any time I've ever even begun to contemplate liquid cooling, someone posts an unfortunate tale of a rupture, wondering if he's destroyed his mobo, and/or an article comes out showing that unless you've gone top-of-the-line, a decent air cooler is sufficient. Just go to www.frostytech.com and look over their numerous cooler reviews, and peruse their top-X lists.
FrostyTech is like the Bible to me when it comes to cooling questions/products. That said... the Hydro cooler you listed is on that same page with the benchmarks... 4 degrees warmer, a little bit louder and more expensive? I'm sorry... that's just a raw deal any way you look at it.
And I don't think it's fair to say that high end air cooling is "sufficient" ... high end air cooling is BETTER than entry level water cooling setups. The ONLY advantage the Corair Hydro will have over a conventional cooler is its ability to get more heat out of your case... but you listed an Antec 1200... heat buildup won't be an issue in that case.