H2O

http://http://wiki.blender.org/index.php/User:N_t/SummerOfCode2005/Fluid_Animation/Tutorial_1

I followed the extremely basic Fluid tutorial found on the blender wiki. I found it a tad frustrating because it was for begginers so there was a lot of information that I didn't need to be told about as I am not a begginer. I ended up having to look for another tutorial to complete this one as it is based on an older version of blender so I was unsure what to do, but it is not a bad tutorial.
Basically all you need to do is create a cube for the fluid to fall into and a sphere to create the fluid.
The fluid options are found in the physics buttons on the Object panel.
For the cube you need to select the fluid then select Domain, this means that the water can not escape. For the sphere select fluid, but then select the next fluid button that appears. Make sure the sphere is positioned in such a way that it will fall into the box.
This is basically all you need to do, in the timeline is chose to have 50 frames just to have a very short video showing blender fluid ability.
I then made the material look more like water by using my previous knowledge. Once you are ready to start creating the animation all you need to do is hit the big Bake button in the fluid panel with the cube selected. Once this is done you can animate it!
I will now have a read through the second part of the tutorial.....