Now THAT’S fluid simulation!
http://graphics.stanford.edu/~fedkiw/animations/torus_cage.avi
Something to aim for 
Lunarman
Um… what, exactly, is the kind of fluid that’s being simulated? One second it’s a softbody-like gelatin and the next, it’s a water-like liquid. Name one substance that does that.
Granted, it’s cool looking, but give a practical purpose for it.
I’m pretty sure this could be done in Blender already (if not then pretty soon I would imagine). The effect is rather interesting one, granted…
I would say you say you simply need to make a couple of tori with softbodies (some of which are modelled with seperate closed compartments inside) and at random times the softbody effect is switched off and the fluid sim takes over (with velocity values set by observing the softbody before it “liquifies”). Seeing the fluid sim meshes are saved to the hard-drive I’m sure there is a way of loading them up at different times too.
The only problem would be that the current fluid sim doesn’t take into account moving obstacles (yet) but this is planned and wouldn’t make much difference to the effect.
EDIT: Fweeb posted as I posted. Yes I can think of one thing that behaves like that - water balloons. 
Your point still holds though - don’t think I have ever seen a water balloon animation in CG till now.
Koba
It’s just like rigid bodies that turn into fluids when enough force is applied. It doesn’t quite work though because at the end, half a donut jumps into the air. You might be able to do that in Blender by doing some rigid body dynamics and then setting fluids to start at a specific time. I don’t think it would quite work the same but it’s close enough and you avoid the half donut thing.
What he does is just have a softbody spring tension that triggers a transform to fluid, we don’t have python access to softbodies and fluids such that this would be easiy doable in blender right now, but it could be done with a bit of code work.
LetterRip
note the platform glowing red hot. it is IMO melting from a rubber to a liquid.
i think it was melting when in a certain distance to the platform
Alltaken
Um… what, exactly, is the kind of fluid that’s being simulated? One second it’s a softbody-like gelatin and the next, it’s a water-like liquid. Name one substance that does that.
Granted, it’s cool looking, but give a practical purpose for it
A water balloon popping?, a super hero with the ability to transform into water?, does’nt really matter does it, we don’t have to be practical, give us the option we’ll find a reason for it
Tomato Ketchup - very vicous when left, and runs like water when hit (that’s why you hit ketchup bottles to get the stuff out
Well said qwed88, my thoughts exactly.
Don’t need a practical purpose. Its animation… Like the metal morphing terminator had a practical purpose… cmon… most Animation and Visual FX is all about things looking cool!
Does anybody know whether the current blender fluid implementation will eventually have the following features?
Ability to set IPOs to turn on and off / regulate Inflow and Outflow
Ability to alter Domain settings throughout the ‘Bake’. This would allow us to do, for example, half a simulation with a Honey-like setting, and ‘morph’ the settings to ‘Water’
Ability of Fluid simulation to take into account any object with Fluid Sim obstacle properties which passes through the Domain, responding to it’s movement, rotation etc
Ability to assign different fluid properties to different objects within the Domain… possibly set up multiple seperate domains and where they overlap, multiple fluid interaction takes place
Lunarman
all that would require is a fluid goal, and a python link that decreases the attraction to that goal depending on the amount of time it spends in contact with the plate.
C’mon people! Who cares if it doesn’t conform exactly to how a substance would in real life? Isn’t making surreal stuff exactly what CG is about? at least for me it is. Anyway, i’d like to point out some great stuff about this animation.
I find the really impressive part is after the doughnuts turn into liquid. Look at how accurately the water is similated splashing and flowing. I’m simply amazed. :o !
That’s fun to watch. By the way, it’s obviously rubber heated to an insane degree.
Okay, okay… so it’s not a big deal. I was just curious.
I think its melting jello - since it’s water based. Rubber would stick to the heating element more (even at an insane temperature).