This tool has been used and abused ever since the filter was introduced in photoshop, but if cleverly used it can be extremely powerful.

This link features a small introduction on how to raster vector images and apply the liquify tool to create rich lighting effects.

http://mos.futurenet.com/pdf/computerarts/ART146_tut_1.pdf

I have used this technique for the following sites:

Drop Dead Gorgeous
http://www.worsethanafairytale.com/launch/
• The entire landscape was created using the liquify tool on landscape/nature photos. Once this was done I altered the perspective and burned and dodged the hell out of it to achieve the illusion of a natural light source.

Kelty
http://www.kelty.com
• Same technique used here for the landscape.

Who Do U want to B?
http://www.whodouwant2b.com/
• Liquify tool was used here again for quick and dirty “ribbon” effects.

Thalia
http://www.thalia.com/2.0/
• By now you should be able to spot my liquify action.

Anyhow, digging up abused filter effects in photoshop and applying them in clever ways can be powerful.