Some fun with Messrs. Navier, Stokes, Horn and Schunk. I started this ages ago, but it was a real headache getting the fluid sim code right. The coarse youtube resolution doesn't do the effect justice -- there's a ton of fine detail that doesn't come through. Nonetheless, you can probably get the gist. Works in real-time.
P.S. if you liked this, you will probably like this and this as well.