Ok so this is a work in progress with alot of issues.  First, is there a way to really make the cylinder of water have and extreme bumpiness?  Like pouring water or is the best way just to cute chunks out of it using negative rocks?  Also does the splash at the bottom look real?  Or is there something else I could do better.  Any suggestions on lighting.  Im thinking a 1 or 2 color background with a backlight to shine through everything... any other suggestions?

No matter how bumpy you make a texture, it wont change the outline of the object, bumpmapping is not built to work that way. 
 You could model a flow of water with metaballs, but its a difficult thing to achieve a realistic look... and it wont render very quickly.

I would use a symmetrical lattice for the pouring water, either draw what you need in the terrain editor or find a suitable water/splash brush (from the free stuff here) and do it in photoshop.
Also look here in the freestuff or marketplace for "JB´s watermats", very nice collection of water materials. Also look for some water objects by Spacebones (cant remember the actual name).

I think SPACEBONES (see freestuff) has some water related items that you might find useful.

I think you are on the right track with it! Lown's reccomendation is spot on of course too. I struggle with splashes as well every time I have to make one, but heck, making it work is all part of the fun. This is my first splash, in an image in 03. Just used a symmetrical Lattice, like Lown said. 4 of them actually for this image: http://www.renderosity.com/mod/gallery/full.php?member&image_id=398626

keep at it!

Got me started lol, here I made a splash, kinda, I dunno, maybe yours looks better :) http://www.dam3d.com/2009/WIP/splash you can download the Bryce file from there as well if you want.

i'm going to use it one day..weezer..thanks..it's nice...