This file was made with an earlier version of the nClothWater.ma file. I had not added a dynamic attribute for editing selfCollisionSoftness, so I had to use setAttr calls, because this attribute is hidden on the nCloth node due to limited utility for cloth. It was very useful in this animation, however, and helped to help keep the water from locking up like slush.

One can potentially improve upon this animation by increasing the resolution (under extra attributes on the nCloth node). However it could take a long time to simulate. There is also a problem one can see in this animation where the particles stack in a row along the container walls. Making the walls sliightly irregular might help with this. Or one could potentially use fields to slightly shake up the particles where they stack.

It is also possible to vary the collide widths of the particles, which might also help keep things from being too regular. Just assign a noise or fractal texture to the thickness map on the waterCloth, then adjust the range of particle sizes by using the amplitude or alphaGain/offset.

In terms of shading one could use a mentalRay dielectric shader for better looking water. As well this example has visible in refractions OFF on the particle system node, as this makes the render slower. However the water would look much more frothy and natural where it breaks up if it were visible in its own refractions. Of course caustics would also be a nice addition.