The latest version depends on which software package you are using. For lightwave it is at version 2, for photoshop it is now at version 3. While its easy to push a button to create these effects, they can also be created the old fashioned way. For example the fire. By creating a transparent layer and using the wind filter along with adjusting the hue and saturation levels you create a wavy flame. For a lot of tips and hints, check out http://tutorialhound.com I can post advanced photoshop tips and tricks here if anyone is interested.