This is my first try using Toxis Vec3D class:

The bubbles change colour depending on the distance to the camera. after a bubble blows up a few smaller ones are spawned at the same coordinates. This is just a first test. I am currently trying to make it look more like water and to improce the blow up effect of the bubbles.

Thanks goes out to toxi for sharing such a poweful library!
code.google.com/p/toxiclibs/downloads/list