Research links

fluid motion- http://www.gamasutra.com/view/feature/1549/practical_fluid_dynamics_part_1.php
 http://www.gamasutra.com/view/feature/1549/practical_fluid_dynamics_part_2.php
advanced shadow mapping - http://developer.download.nvidia.com/presentations/2008/GDC/GDC08_SoftShadowMapping.pdf
deforming objects -http://www.cc.gatech.edu/~wojtan/topo_goop/topo_goop.html
http://www.ozone3d.net/tutorials/mesh_deformer.php
http://cg.alexandra.dk/2009/08/14/deforming-geometry-using-radial-basis-functions/
http://www.koji-ohkitani.staff.shef.ac.uk/Jacobian.ver3.pdf