This is a test for the Acid Flood in Chance of Rain. The ball is a stand in for the goggles in one of the last scenes.
It's definitely still in progress, but this is about an hour's worth of work and research. I'm thinking of animating the actual displacement map's texture. I just need to figure out how to apply an avi or mov to a texture in max. I'm sure there's a way, I just don't know it.
Edit; After some tooling around, here's what I've come to.