Your case has a 120mm fan hole in the back, it will very likely fit both a 160mm cooler or an AIO watercooling system.
Judging by your pictures, if you go with something like an H60/H50/Coolit Eco, you'll have enough room. However, you will probably block off a third of your PSU intake. Judging by the pictures, it's an OCZ Fatality unit, most people here would probably agree that it's not a quality unit and that you should be replacing that as a priority. So a watercooling setup would probably be a less ideal idea.
A Hyper 212 at $20 is probably a better choice. Usually, cases with a 120mm fan in the back have room for up to a 160mm fan as long as long as there are no side panel obstructions like a side panel fan or side panel intake for CPU. (either can usually be removed though)
(120mm fan + 45mm I/O shield - 5mm CPU socket = 160mm)
If you're still concerned about clearance issues, get a Gelid Tranquillo, it can be PMed at NCIX for $20 on occasion. You might end up having to buy another higher performance fan though.
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