After seeing Stefan's great ani I decided I had to play with Glue3D, I don't think it can quite do water but the lava looked great! I remembered an old material called "magmalicious" and wondered how it would work...well it works great ! and glue3D works with VRay displacement too 
Here's a still from a test ani I am rendering:
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Here's a still from a test ani I am rendering:
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