Actually, this would be best achieved in Adobe After Effects which is designed to do motion graphics.
+1 for After Effects.
The sample might also have been done in Adobe Flash, which, depending on the end use, could be a viable program as well.
It would not be too difficult to create an image in Photoshop that was the color you wanted and had lines running through it so when you moved it you would see something like the example. You could create a track matte in the titler representing the diameter of the pipe and use it to superimpose the flowing water over the pipe.
Or, how about shooting a video of running water (perhaps coming out of a hose) and using that instead of a picture? Either way, a track matte is probably the solution.
Thanks for the input, I have started learning After Effects and it is much easier than I thought it would be.