There are a lot of liquids you can submerge a computer in. Just make sure it's non-conductive. Mineral oil will work, so will distilled water probably (water only conducts electrictiy because of impurities and ions in it, but distilled, pure water is completely non-conductive), and I bet there are plenty of other liquids that are non-conductive as well. You can also use sealers to seal the motherboard. Spray, or brush, on polyurethane or silicone sealents can go over the whole motherboard or parts that are in risk of getting wet to ensure there will be no damage caused by leakage.
This is a water cooling method I've seen done. You have the chip, then on the chip you have a peltier cooler. On that Peltier cooler, you have another peltier cooler to cool down the hot side of the peltier that is in contact with the chip. On the hot side of the second peltier, you have a heat sink attached to it. Around the peltier and heat sink you build up a sealed water reservoir, and you use the same types of cooling methods as a standard water cooler to cool down the peltier (pump that cycles water into a radiator, cools it, then back into the cooling reservoir).
Now, I'm sure there are other liquids that will also do a better job of cooling that water, like the coolants you put in your car radiator. Or are those only too lower the freezing temperature and raise the boiling temperature? Not sure... But I'm sure water isn't the absolute best, although it is probably good enough and safe enough.
"Trying is the first step towards failure."