I actualyl created a small video showing the issues I had, take a look if you want:
Then one night just before I was heading to bed I found this article. The article describes how to make water using Cellular Automata. I gave it a quick read, and found it interesting, although I was too tired to grasp it all.
So the next day I looked it up and decided to give it a go. About an hour and a half later, plus twenty minutes of tweaking I ended up with the system I have now. How it looks you can see in the video at the end of this post.