Sure its a ray trace trick. Read the manual it expleoins how t install custom mentalray shaders very well.
Its impossible for me to debug your operating sytem form over here. (theres just way too mucj you can break in it that can cause anything). Thats the main reason any sane 3d production needs a computer genius, as its not just the 3d app you need to worry about but just about every resource the computer has is maxed out in any sane 3d production environment
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Also, is it possible to do this in Maya Fluids? Or do you get the same problems with liquid penetrating through geometry. It obviously wouldn't be a problem if it was on a surface or something where you don't need to see the other side, but unfortunately I do need to see the outside
haven't tested, if you man ocan then sure but i doubt a volumetric fluid will work, note i don't use boolTrace but i use something very similliar except its selection logic is a bit more expandend.
as for implicit
http://en.wikipedia.org/wiki/Implicit\_surface