Water ripple on rollover?

Hey there! I am web-hardened developer who has been working with a number of different web technologies for a few years now. I started my career with Flash 8/as2.0, but only consider myself intermediate. Nevertheless, I know the following effect is not too far beyond my capabilities. I would be grateful if the community would join me in an open platform about how the following effect might have been achieved:

http://www.kneib.biz/f8files/water_with_f8.html