OK, I just installed a Tortoise git in my PC. And I\'m quiet amuse about the water effect from its about page.
See Leonel Togniolli's "Water Effects" at efg's lab.

The ripple effect is based on 2D Water Effects in December 1999 Game Developer Magazine Article .
The algorithm is described in here 2D Water, as mentioned by François and as a reference in the source code.
Leonel's implementation is partly based on the gamedev article the-water-effect-explained by Roy Willemse. Here is also pascal code.
There is one more Delphi example at efg's called "Ripple Project", a screen shot is shown below.
