If you have not seen it already, be sure to check out The Science of Fluid Sims on the mighty FXGuide, a great article explaining some of the science behind visual effects fluid simulation with the help of the folks from Exotic Matter. Check out The Science of Fluid Sims here.

One of the most significant and commonly requested areas of real world simulation is fluid simulation. From pouring shots to ocean vistas, directors and artists have come to rely on computer simulated water and similar fluids. Fluid dynamics is a complex area and fluid simulations are notoriously computationally expensive, yet when they work they can provide magnificent production value and breathtaking visual effects.