haha, the old yellow sumbmarine... always a challenge! B)
heres a suggestion, go down to your local hard ware store and buy some clear caulk, it is like liquid rubber, and it is used for water proofing things like showers...
just shoot it in all the corners, and the edges, anywhere that the glass connects, then just run your finger along where the edges connect and it will create a smooth curve in the caulk, and it should also be water proof... as long as you dont pick at it

and yes, i have also heard that distilled water is good for water cooling systems because if it leaks, it wont short circuit your computer, so i guess it would work for your computer... i wouldnt try it though

my guess is that it would heat up way too fast
i wonder what would happen if you left the fans in, it would be kinda strange but cool, like little whirlwinds