Well we are still getting settled here in our new Country. Flying for almost 24 hours straight is a long time when you don't fit between the seats. I still haven't got a computer yet and one HDD that come with me still hasn't hooked up to a computer.
Just before we left I was working on the iso-surface code that is meant to turn the bunch of particles into a nice flowing liquid. That was getting there and only have a few more details to check. Unfortunately for a lot of real world applications it is slow and could add 20% or more to the total simulation time.
The Goal is now to have a custom fluid simulator that will interact with animated objects. The 2nd feature set will be floating objects. This is mainly to support the special effects that I want to put in some short films meant for a game that my brother and I are working on. This correctness won't be dealt with until next year.
I must admit that I have been surprised to get some comments. I want to point out that my original goal is a fluid dynamics solver that will work for real design work. Not just cool animations. I like my high power rockets and work like to contribute to the community a bit with this code. Also I assure you this is not dead, but slow. I will announce the first release in the blender forums.