First of all click on this link: http://www.youtube.com/watch?v=-m4pe6UAS2M .
Now watch from 1:16 to 1:51.
When will Unity 3D finally support that type of fluid/water ?
It would be very nice to have that inside Unity 3D.
When Tim Sweeney goes to work for Unity Tech lol j/k
I think water effects are possible, but not interactive, You may need to know the cloth physics in unity, this may be possible for this use.