I am looking to make an ultra compact machine and wanted to know the best way to proceed.

I am looking at a 77W TDP IvyBridge CPU....will be using the inbuilt GPU. I want my machine to be as quiet as possible whilst remaining small. I want to use the VESA mount to mount it on the back of my monitor.

What I have bought so far:
Crucial M4 SSD (128GB)
PicoPSU 150W + 150W power brick
Zotac 9300 ITX <------- temporary until I get the new bundle.
Intel C2D E6600 <------- temporary until I get the new bundle.
2x2GB DDR2 <------- temporary until I get the new bundle.

Now I am looking at the Mini-ITX M350 case but I was wondering about cooling and sound. Given all the holes in this case there wouldn't be any real air flow as such.

The only fan I want is on the CPU cooler...which aftermarket cooler should I go for as there is only a tiny amount of room in this case.

Is it possible to get what I am after with, keeping things relatively cool whilst quiet aswell?

Probably. You could try a http://www.silentpcreview.com/scythe-kozuti. Overall external height of the case is 62mm & the Kozuti is 40mm. It'd be tight, but I think it would fit.

The case claims to be able to fit the stock intel cooler. I have a stock intel cooler that I can measure, but I've no idea where the measurement starts from. I also don't know what revision of intel cooler it is referring too as I am sure they are all different.

How would the Kozuti compare (sound wise) to the stock cooler?

What I was more worried about is the lack of air "flow" through the case because of all the holes. Is that likely to cause me an issue?

1. Measure from bottom of heatsink base to max height. But there have been many Intel "stock coolers" in the last couple years (for 1155/56). One of the shortest ones I have here measures ~45mm. If that fits, then the height of the Kozuti will not be a problem.

2. Kozuti fan is way nicer sounding, quieter.

3. No, there's no "flow path" as in more conventional ATX case, and I think the vent holes everywhere will help. Way better than no vents or restrictive in/out vents -- which they would be in such a tiny case.

FWIW, the GPU on that mobo can get pretty hot without adequate airflow.