I have just finnished putting the fluid surface texture object into the Oddity Engine and thought I'd show it off. It allows for interaction with mouse, ripples can interact with a blocker texture for static boundries in the surface and disturbances can also be made via a seed image, which is generated via a render target to capture meshes then use that image as the seed image to disturb the fluid surface.
The fluid surface is generated based on a single rendertarget, applying fluid smoothing shader and then a disturbance shader to keep the ripples going and inject new disturbances.
you can see this in realtime video's below:
Video_1 demostrates mouse interaction on the fluid surface.
Video_2 Shows skinned meshes disturbing the water surface at different water level.
EDIT: and here is a demo:
Windows XP (sp2), Windows Vista or Windows 7
Graphics hardware supporting Shader model 2.0 minimum.
Latest version of Direct 9.0c installed on the system.