Your temps are OK, probably a little higher than you were expecting but still OK. One of the things about water cooling is that the temps do not increase as fast as air cooling when you apply more voltage / OC, so you might have a bit more head room than you think before you hit an unstable temperature.
Ways to reduce the temperature;
As already said, ensure that your rad is fully bled. It looks like you have enough spare hose to unmount the rad and turn it round if you want, or just tilt your case a bit. Remember that the air wants to go up (obviously) so you have to move things round so that the air can escape in an upwards direction.
A reseat of your block can work. AS5 is a decent TIM, you could maybe drop a degree or two by going with something like Shin-Etsu, but you might also drop a few degrees by getting a better mount. I usually do a few mounts until I am happy, it can make quite a difference.
Add more fans. You will see a reduction in temperatures by going for push / pull, but also an increase in noise. Might be a bit tight on space too, check that you wont be interfering with your motherboard before buying more fans.
Reduce your ambients. Can you put your rig in a cooler place? Is it drawing hot air in (from a radiator etc.)?
One other thing you might consider is recording the temperature of the water against the ambient temperature; this can tell you how your loop is performing. If you have high CPU temperatures and there is almost no difference between ambient / water then your block isn't picking up the heat well. If there is a large difference between ambient and water then your rad isn't dumping the heat well enough. It won't fix anything but it might point you towards what you want to look at. However, as I said, your temperatures in this case are fine. This is only worth doing if you want to spend a lot of time and money in dropping a few degrees.
As for the big long argument about loop order and hot water vs cold water going into your pump, consider just how much the temperature of the water changes round the loop. The graph below shows the water temperature rise through a component dumping a certain amount of heat at a given flow. It is calculated from the specific heat capacity of water, the flow rate and the power of the component.
As you can see, even with a low flow rate (0.5GPM) which you should be well above, with the OP's 110W (from the CPU ID screen shot) the water temperature is going to rise by less that 1C
. Not really worth changing the loop order to run the pump cooler. Incidentally the same holds true for the heat dump of a pump; even a 50W pump is only going to increase the temperature by a very small amount. Not a problem.
Loop order in general is unimportant as the water temperature rise through a component, and subsequent drop through a radiator, is generally very small. The only exception would be if you have a SLI setup and you are trying to get every last degree on your CPU, but you still won't get all that much.
Edit: These type of pumps (centripetal) are far better at pushing than pulling water. This is why it is important to have the res slightly above the pump, so that there is a slight amount of head at the pump inlet. It does not have to be much, just so long as the water flows naturally into the pump. Not a problem in the OP's case as the res / pump are combined. /edit
Temps are fine, you should have a bit of extra OC headroom
You can try to reduce them a little, but might not be worth the effort
Loop order is not important, water temperature only changes by a small amount through the loop
Pumps push, not pullEdited by GingerJohn - 2/7/11 at 10:16am