hi im new to all this liquid cool systems i got just got the evercool wc-202 i have not installed it yet and i was just wandering, would u lose cooling performance if u used regular water insted of distilled water

No. But tap water contains minerals and other impurities that not only make the water conductive (bad if you get a leak, even though that is rare), but also make the water more corrosive. Over time this can lead to rust or mineral buidup in places.

I would not suggest using tap water.

thx do any one know if this system is good for a p4 3.2 ghz processor

should be plenty for a 3.2ghz.... in fact, should be plenty for about any processor you can get for a PC today.

Just for the info of those reading, some water cooling units perform worse than a good HSF combo, but these are usually the cheapest watercooling units out there. Do a little reading online before investing in a bargain watercooling unit.