Power Supply up or down... plus BONUS QUESTIONS!!!

Should I mount my power supply up or down?
Case: LIAN LI PC-7FN Black Aluminum ATX Mid Tower (the case does have an opening under the power supply)
Power Supply: XFX P1-650X-CAG9 650W ATX12V 2.2 / ESP12V 2.91 SLI Ready CrossFire Ready 80 PLUS BRONZE Certified Modular Active PFC Power Supply
Both purchased on Newegg.

Also some additional questions ( i know they don't belong in this topic)
1) my cpu is hotter now that i have the artic freezer pro 64 it did take a long time to get hsf secured (i just bought aftermarket thermal paste, will that fix the issue)
2) my audio does not work off the back of my mother board GIGABYTE GA-890GPA-UD3H AM3 AMD 890GX SATA 6Gb/s USB 3.0 HDMI ATX AMD Motherboard61877904 (only wire not pluged in says AC'97) audio works fine on the top of the mobo.

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More about power supply down bonus questions
  1. I think you have mounted the psu properly.
    The way it is, it gets cool air from outside the case. This helps keep the psu cool.

    If you mounted it the other way, the psu would run hotter, and would not really help cooling of the graphics card pr cpu.

    The key in mounting a cpu cooler is to get the proper amount of thermal interface material(tim).
    Tim is used to fill in microscopic imperfections in the mating surfaces. It is much more conductive of heat than air.
    If you do not use enough, it can't do it's job.
    If you use too much, it acts like an insulator and does not work well.
    It is very hard to use too little. A bb sized drop in the middle should be sufficient.

    Have you updated your chipset audio drivers?
    Are the speakers plugged into the proper holes.
    Have you configured the sounds in the windows control panel?

    Very nice wiring job!
  2. You have an unconnected "wire" labeled "AC97". I suspect it is a cable with a (10-1) pin connector on the end. Does it come from the front panel? If so, that is supposed to be the way audio output gets to the front panel sockets, and it should be plugged into the F_AUDIO port near the back of the mobo (see your manual, p. 30). BUT if you already have plugged into that mobo port a different cable to the front panel labeled something like "HD Audio" you may not want to change. You can plug in and use ONE of: HD Audio or AC97 Audio. See your manual, p. 30 and pp. 102-3.

    I'm intrigued by your statement that, "audio works fine on the top of the mobo." What do you mean, "on the top". Maybe your external audio sockets are on the top of your case, rather than on the front?

    Anyway, regarding the rear panel audio connections, read through your manual on pp. 102-3. You must have both the mobo drivers installed (including the audio device drivers) from the CD that came with the mobo, AND the audio application utility to set this up. (Details of these installations are in Chapter 3, pp. 61-64.) Details of configuring audio at top of p 103. Maybe I can clarify how these work. Step 2 is about how to configure the output sockets, and Step 3 is about setting your audio system to feed your particular speaker system.

    Step 2 on p. 103 is not completely clear. Your audio system has an auto-configuration function built in. Start by unplugging ALL connections on for the 6 audio ports on the back. Boot your machine, and get into the audio utility as described on p. 102. Now, plug in ONE connector - say, the front speakers - and try to conform to the default port assignments shown on pp. 21-23. A window will pop up on the screen asking you to specify what you just plugged into that socket. You MUST tell it. If you don't, it will disable that output! Next, plug in another item and respond, etc., until you have all your back panel devices plugged in. (My system has a 5.1 speaker system, so there are 3 speaker plugs into the back sockets, and nothing else. I plug my microphone in at the front.) That default behavior of turning off a port if you don't specify what is plugged in can cause lots of trouble!

    Once those are connected, proceed to Step 3 on p. 103. This is where you tell it what speaker system you have just connected, so that it knows what signals to generate and send out. It took me a while to find this and go from 2-channel stereo to 5.1 channel surround-sound!
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