try playing with this, you should see something once to find the gooblob.tga file.
Rem Project: fluideimtter1
Rem Created: 31/05/2008 17:31:02
Rem ***** Main Source File *****
sync on
sync rate 60
get image 1,0,0,100,100,1
color backdrop rgb(60,64,0)
autocam off
position camera 0,0,-2
phy start
make object cylinder 1,.1
rotate object 1,80,0,90
phy make rigid body static box 1
load image "gooblob.tga", 1
id=2
phy make fluid emitter id
phy set fluid emitter type id,1
`PHY SET FLUID EMITTER DIMENSIONS id,0.01,0.01
`PHY SET FLUID EMITTER FLAGS id,1
`PHY SET FLUID EMITTER LIFETIME id ,10
`PHY SET FLUID EMITTER MAX PARTICLES id,2000
`PHY SET FLUID EMITTER RANDOM ANGLE id,90.0
`PHY SET FLUID EMITTER RANDOM POSITION id,2,2,2
`PHY SET FLUID EMITTER RATE id,2000
`PHY SET FLUID EMITTER SHAPE id ,1
`PHY SET FLUID EMITTER VELOCITY id,1000
phy build fluid id
texture object 2,1
do
control camera using arrowkeys 0,.1,.1
phy update
sync
loop
Dark Physics makes any hot drink go cold.