FYI, I thought a little bit about ideas for other tools but they started to go pretty far afield.  There are three basic ways to simulate water:

• Sim the physics in freeware, like Blender
• Sim the physics in hugely expensive apps like RealFlow, or some compromise like Metaballs in Vue
• Fake it in postwork, or with some one-off model you buy

It's damn hard to simulate real world physics, just based on my cloth experience.

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