the best arrangement for fans in a standard ATX case, which that looks like, is intake low and front, exhaust high and rear.
Someone might correct me on this, as i've never had to use one, but I thought the best way to use a side fan is blowing into the case -unless its REALLY close to your heatsink and would then work against the heatsink's fan. Used as an intake, side fans give a bit of flow to your cards, and a bit of fresh to the heatsink.
I've always set up pcs so there's more extract than intake (negative pressure) or the extract/intake are very close. That fan grille on the back of the case is really restricting airflow.
e2a: had a better look at the pic, you don't have any intake fans if your side fan is used as extract - your intakes should be at the front in front of your hard drive.