Is it quieter than your previous setup? If so, then watercooling is doing its job. Air cooling can be just as good or better than watercooling up to a point, but the added noise factor of aircooling is the problem solved by most watercooling setups.
Also, you are cooling a video card too, so there are two heatsources being cooled instead of just one. This could also be adding to your increased temperature, but I guarentee it is far quieter than having a fan on the GPU and CPU spinning at 18023801042 rpms. In actuality, temperature has very little impact on system performace when using the same clock frequencies. It is only when there is a massive increase or decrease of temperature over the norm that you get problems or a great potential for overclock. What I am saying is that a few degreese doesnt really matter all that much, but if you are talking about -10C or 80C then you can start getting pleased or worried, respectively
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