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Here is a example I did with what you can do with the Modern Minds RippleApplet...

RippleApplet 1.1
RippleApplet is an applet and a canvas class that uses a mathematical distortion algorithm to create a water-like ripple or wave animation. The ripple animation frames are rendered using a user specified background image. Each frame of animation can optionally be overlaid with a static transparent GIF (GIF89a) foreground image. The applet can be configured so that when the user clicks on the applet, a link to a specified URL is performed. On initialization, RippleApplet loads the image to animate and the static overlay image (if specified). The applet then begins to render the animation while displaying a progress bar. This documentation and the object code for RippleApplet and Ripple may be copied and distributed freely for non-commercial purposes so long as neither the code nor the documentation is altered in any way. If the object code is distributed with any documentation whatsoever, then this unaltered document must accompany the code. www.modernminds.com
I could not find the RippleApplet on the web (Not even on the website) so I went searched my CD lists & found it on a CD so here it is
RippleApplet.zip