The program is called RealFlow. Found this on YouTube. I like it. I've seen stuff like this done in Blender, but not to this degree of realizm. Enjoy:

http://www.youtube.com/watch?v=s-snEYnu-pA&feature=g-vrec&context=G23205c1RVAAAAAAAAAQ

If I had a nickle for ever time a woman told me to get lost, I could buy Manhattan.