Ah, okay, you mean the car example
you can destruct level by changing there vertex only, you will find examples on the aum
the water can be animted via a shader - look on the wiki
the spray is just 15 lines of code to add
about the entering in faces -since this is an old demo, it could be made better now, with physX as an exampele
the game need no high res computers
btw: Are you Carlos Ribeiro(on facebook)?