Displacement Painting

I am trying to do this: http://www.youtube.com/watch?v=GG0KyT9AOeI&feature=player_embedded with dynamic painting. I know how to get an image sequence but I do not know how to apply the image sequence to effect the mesh in an animation like he did in the video. Any ideas?

Here is the tutorial for using dynamic painting for anyone interested:http://www.miikahweb.com/en/articles/blender-dynamicpaint-basics
posted this on multiple forums so dont be suprised to see it somewhere else. :wink: