Fluid Mechanics in Game Programming
cowboyprogramming.com
cowboyprogramming.com
I should add that anyone wanting to put fluid dynamics into their program might also wish to google about for papers on opengl and GPUs performing the calculations.
To see a game that makes an interesting use of fluid dynamics you could look at pop-pop from Ambrosia Software. Completely ungamerelated, but the background of the playing field appears to be a fluid simulation reacting to the play elements. It is beautiful and slightly hypnotic. (Game was built in a day of slower CPUs. The blockiness of the simulation reflects this.)
A really interesting question in the context of fluid dynamics for games is what is the simplest thing you can do which makes the movement of a fluid look realistic, without worrying about all the details of mass conservation, numerical diffusion etc etc that cause the computational fluid dynamicists to pull their hair out.