Animating water flow

[jblaze]

Hi guys,
I'm looking for a way to animate water flowing through pipes and holes. My aim is to get similar result to the attached SC8_1.mp4 giving the perception that the fluid is flowing from one direction to another. Or if not possible something like this animation - link.
Using this displacement tutorial I tried to do the water flow but it still doesn't look right especially the sharp peaks. I did a quick preview render of my result - water animation.avi. I tried exporting the whole scene but it's more than 1GB, so I'm uploading the bip file.
Any comments and suggestions are welcome.
Thanks!