its inside in the back of the van, I have a vent on the side of the van to feed the outside air into it. It's important that it has outside air going through the evaporator pad otherwise it won't work. I use 4 inch flexible ducting to get the air into the cooler
Its best if its not humid under 50 percent, but even at higher humidity you still get a cooling effect. Last year it was very humid (for southern california) but the swampcooler got me through the worst heat. The hotter it is the more water that you will use, maybe 3 to 4 liters in a hot day.
No need to use ice, air going though the evaporater pad will cool down. I use the celdek pad, it lasts up to 5 years without clogging up, the blue durakool pad gets clogged up after 3 months of use (from water impurities). When it clogs up it restricts airflow.
For vehicule use, you need to seperate (with a divider) the water section from evaporator/air section in the swampcooler, that way when your driving around the water doesnt come out of the swampcooler. On the internet you can find directions to build a swampcooler, the bucket (burningman) design is very popular but won't work in a moving vehicule.
side vents that feed swampcooler with outside air
this is the temperatures on a real hot humid day insulated/uninsulated sides of van. If I turn off the swampcooler, it will easily climb to over 100 degrees in the back. I always carry spare 12 volt water pumps and fans in case of breakdowns. Once I lost a pump without a spare and had to buy an AC power fishtank pump for temporary use, it got too hot (unbearable) in the van without the swampcooler.