Well, I would like to do a tutorial, but I would probably not get in this exact result, since I used this to learn myself, and I would not have the time to do it step by step right now. Pherphaps when I attempt to do this again, witch I plan to, but that will take some time.
Meanwhile, you could take a look in the file I am sending. The thing is not really complicated. I have the low poly dragon with an animated armature in one layer set as fluid control, on the other I have the domain with a considerable size for blender possibilities, 3 meters (I wanted it bigger, but blender fluids just can not create the illusion of size properly and it does affects a lot the simulation times), and on the other there is the pool from where the dragon would emerge.
The time was a little low, 1 second for 150 frames, because I wanted to see some splashes with the dragon coming quickly (all that in one second in the simulation world is fast). It did not turned out great, because the slow motion fluid do not look like water. It is a problem to find a sollution later.
The yafaray part is the easy one. If you have it installed, you just set the material of the fluid like any other object, setting it as glass with 1.33 ior. If you push to render an animation, it animates like anything else…kind of. It is buggy to render fluids. Some time it crashes. I had to render it in windows because in ubuntu it was crashing.
The blood shader I animated in blender. Much slower then yafaray, and worst, but I am more familiar with blender and I had to re-render it in blender anyway, to get the speed vector for the motion blur.
The motion blur was post proccessed from yafaray in blender. I used the speed vector generated by the blood render to create motion blur in the yafaray rendered .pngs
Unfortunately the file with the nodes has no animation because I did some stupid savings from 2.5 to 2.49 to test. The animation gets lost when you do this. But if you are note familiar with nodes, I can give you the file without the animations.
That is it. You asked about modeling, but I am a terrible model, rigger and animator, as you can see by the problems in the file (terrible terrible skin and rig), so I am not the one to teach those things. There are many tutorials out there. There is nothing special in this case, except for the poly count. Keep it low
I hope it helps.
anim.blend (269 KB)