We've already seen how PhysX liquid simulation effects behave in Nvidia's own demos, but what about an actual game? Nvidia has released a non-playable tech demo of Action Forms' upcoming survival-horror shooter Cryostasis: Sleep of Reason that shows off just that.
Cryostasis takes place in 1968 near the Russian Arctic, where the game's protagonist must explore a derelict nuclear ice-breaker. The survival aspect looks to be based around heat and cold, so thawing ice (and the resulting water) makes up a decent chunk of the visual experience. The water simulations do look fairly believable, although puddles have a somewhat lumpy appearance—kind of like the "tapioca soup" look of the Nvidia PhysX liquids demo.

Nvidia tells us Cryostasis: Sleep of Reason is coming out in early 2009. The game uses hardware-accelerated PhysX to simulate fluids using "smoothed particle hydrodynamics," a system that computes both viscosity and repulsion to "make the particles splash and puddle as if they were part of a real fluid." The tech demo is available as part of the second Nvidia Graphics Plus Power Pack, but you can download it on its own by unchecking the other items.
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