I think it would definitely work better than what you are using now as you will have a much larger (in volume) heat sink and you will have more options for cooling as you wont have a restricted air flow. Most P4 3.06Ghz CPUs produce between 50 - 85W of heat. The Black Ice Micro is rated for "236.6 KCal per hour (938.89 BTU per hour) or 275W" It should be fine according to specs...
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Air cooled my ass.
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