We have started to intergrate the code into art of illusion. If you are like me and havn't heard about AoI then pop over to site. Its a great project and its writen in java which makes intergrating easier than blender. But like all 3d apps its takes getting use to since everything is slightly different. It also has volume rendering which has appeal for smoke effects. And yes I'm still going to put this in blender as well. AoI is great but lacks some of the great modling and animation of blender. But then blender is older and has a lot more people working on it.
I even have some renders from the AoI raytracer and the intergrated fluid engine. Still early stages tho. And note the freck out in one of them when the fluid goes unstable. For those of you that use the blender fluids, just remember its a very easy fluid solver to use, and will problably always be easyer than this one... anyway, the links:
smaller particles and freck out!