These are some terrific responses to the question. I might add a little about the actual difference/importance of air versus liquid cooling for an internal combustion engine. I have some experience with turbos and inter-coolers for cars, and some of the most important variables for those systems come down to the exact same physics at work in any motor. The most important variable, is heat. Heat generated by the combination of friction, compression and detonation. The more heat generated by a motor, the less efficient that system will perform. The high-temperature of the intake air charge will cause the fuel/air mixture to prematurely detonate, before the piston has fully reached the ideal position, before top dead centre (BTDC). Otherwise known as "pinging" or "knocking", this causes modern, EEC-equipped engines to retard the timing, and increase the percent of fuel to the mix to help reduce the heat. All this reduces power and efficiency. One way to help counteract this on a given motor, is to use higher-octane fuel. The higher-octane fuel, in itself, does not mean more power. But the effect of the increased hydrocarbons (octane, in this case) help to resist the explosive results of pressure. The higher the octane, the higher the pressure and temperature can rise in a given motor. This will allow the motor to move more air through (as it is just a glorified air pump) in the same amount of time, hence creating more power. So adding additional ways for the cylinders to transfer heat away from the incoming air/fuel mix is the first step to promoting more efficiency in the motor. Aluminum blocks, liquid-filled jackets around said block and cylinders, and in the case of forced injection, large inter-coolers, all help modern motors control their heat FAR better than any air-cooled motor can ever hope to do. So if you compare motors with identical bore-stroke, the difference being air versus liquid cooling, the liquid one will always create more power at the same RPM.