Air is mostly nitrogen. There is dissolved air in water, in proportion to the temp of the water. Two places this causes problems are 1/ steam boilers, which often require deaerators to strip the air (oxygen in particular) out of the water, and 2/ hot water heating systems. Under system operating conditions, air will pop out of solution. This results in air binding occuring at upper parts of a system, even though the system can be significantly above atmostpheric pressure (air at atmospheric pressure cannot leak in). In hot water system, this is the source of many problems. Hydraulically, the arrangement of the components doesn't really matter. From a dissovled air removal perspective, it matters a LOT.