Blender Magic Fluid Simulation
Magic Fluid Control
By N. Thuerey, R. Keiser, M. Pauly, U. Ruede
This is cool.
More info:
http://www10.informatik.uni-erlangen....
and
http://www.blendernation.com/2006/12/...
This video isn't my work, I'm just posting it because I think people should check it out.