First place to start would be the water-cooling sticky, it will explain a lot of the concepts behind water-cooling and some of the math.http://www.tomshardware.com/forum/277130-29-read-first-watercooling-sticky
Chances are it will answer most of your questions.
Has that rig been built? Because it looks pretty unbalanced to me.
EDIT: You should get your friend to learn all this stuff as well, water-cooling isn't exactly something you can do without knowing background knowledge. And ultimately, they are the one who's going to be building, maintaining and upgrading the loop. So its best that they know understand what they are doing and getting themselves into.