We were approached by Luck Laboratories to create a Flash animation of ice melting around a text field. We realised the best course of action was to photograph ice cubes as they melted (using a hair dryer to speed things up!) to work out what the edge between the ice block and the puddle should look like. We then retouched these images in Photoshop to create a single ice block.
The finished effect can be seen below, there's a bit of a disparity between the size of the block and the puddle it produces, but the effect works pretty well.View melting effect