I'm always worried about the thermal capacity and noise of a 1U heatsink. The board is in a Lian Li desktop case, so size isn't too much of a concern. Sadly, there's not nearly enough airflow (and/or fin density is too high).
..and $60 is slightly more than ideal. There are Thermalwright LGA771 solutions, but that's about $70 each.
Just means it'll flash orange. Chassis intrusion will cause all the fans to ramp up to a million RPM. If the plan of action is to go chassis open with custom coolers, I'd probably suggest removing all 1U fans and remount some nice 120s top-down. It'll have a fit, but it shouldn't stop it from booting. As long as it's quiet, let it.
I have a PowerEdge 1750 in the shop. Here's a video of it just going through the basic fan cycles. When it first powers on, that's the low end. When I simulate a power failure on one of the PSUs, it kicks up in to emergency mode.