Open PSP you need to make three images from one. To do this the easy way is to open the original then press the shift key and the D key on your key board three times. Then X-Out the original. Click on the Lasso tool and using these settings: Selection type-Freehand, Feather 0 draw around the water. Some dotted lines will appear, these are comonly known as marching ants. Click on selections->Modify->Feather, use the feather selection number 3 or your preference, 3 is a good place to start.

Now use the Almathera puddle filter. The settings will be:

Now save the image and minimize it. Get image number 2, select Edit->Paste/As a new selection. Then place the selection on top of number 2 exactly. Feather again with the same settings as before and apply the puddle filter again, but change the scale and save the image. The higher up the scale the rougher the water gets. Do the same again with number three: Edit->Paste->As a new selection, and repeat all the other steps. Feather at the same setting, the almathera puddle filter again with a little larger scale, but not too much.

Once all three images are saved in PSP format open them up in Animation shop and run the wizard. The settings are: Same size as first frame, Transparent, Upper left corner of frame with canvas color, repeat the animation YES. Then save the animation if your happy with it.

Settings vary on different size images so play around with it.

The more frames you edit the the more smoothly the image

will flow.