I placed high resolution ball to drop to floor in cloth room trying to simulate a water drop and splash in 30 frames. Here are the stats I made:

Ball y trans= 20 on frame 1 and 0 on frame 30
Object polygon against cloth polygon
cloth self collision
drape frames 10

Clothify BallUV3_1
Collide against GROUND
Collision offset/Depth 1.000
Static/Dynamic Friction .5 and 1.00

Fold resistance 1.00
Shear resistance 10.00
Stretch Resistance 10.00
Stretch Damping .01
Cloth Density .005
Cloth Self Friction 0
Static Friction .5
Dynamic Friction 1.00
Air Damping .02

The problem is when I calculate the simulation, the ball drops in a certain length but it doesn't hit the ground and stays suspended on the air. What did I miss?

And also is it possible to make the ball distort its shape while falling? Drape just gave it a pinch at the bottom.

Anyone done a fluid simulation using cloth room? I would like to hear from you.

Probably easier to get this effect with magnets and waves.
Put a dummy prop just below the ground ... add a magnet to the dummy,
and set it to affect the Ball.

Put another dummy prop at the same place as the Ball, parented to
the Ball so it moves with it.  Add a Wave to this moving dummy, and
set the Wave to affect the Ground. 

If you adjust both the magnet and wave appropriately, you'll have the
Ball compressing as it approaches the bottom,  and you'll have the
Ground forming a dish as the Ball hits it.

(You may need to use a hi-res square, the so-called Cloth Plane,
as the water surface, since the default Ground doesn't have a fine
enough mesh to shape properly.)
,

I'll try that I am now reading a tut about magnets.

So far, this is the closest to fluids I dug in from the posts:

http://www.renderosity.com/mod/forumpro/showthread.php?message_id=3146356&ebot_calc_page

But it is incomplete for me, for there are no Dynamic Control values included and I am pretty much a visual guy.

the ball appears to hang in the air because it has collided with the floor. The collision offset distance is the little gap. If the ball collides on say frame 25 the extra 5 frames after the collision provide the squishing. It wont splash though , it will just mush down a bit.   The ball doesnt deform into a teardrop either because there is no real drag on it while it is falling.

Does the cloth room consider volume on a closed mesh (e.g. sphere or box)?  If not, that would make simulating a water drop kinda tricky I would think.  In such case, cloth density, stretch and fold resistance would be key variables when fine tuning the effect, wouldn't it?

Regards,
                     CGeorge