You want to spend some time researching "compound effects" such as Compound Blur. These fitlers use the luma values of a grayscale image or movie to drive effects parameters. Very cool, very fun, ultra-controllable or totally random.
But developing a wave-like or dream effect (you mean like the transitions in classic Wayne's World bits?) takws a bit of practice. Try looking up ripple dissolves and applying what you learn to other effects.
Projecting video onto smoke is more complicated than you might think because the particles are floating in 3D space and the image becomes wildly distorted. Much easier to project onto sprays or sheets of water. Even better are conventional theatrical scrims of silk billowing in air streams. Totally controllable. No fire.
Hey guys thanks for the info so far.
Ok, I am EMBARRESSED to link to this but... http://www.youtube.com/watch?v=NG2zyeVRcbs
The effect where the video kind of floats, is transparents, and then flys in is what im going for.
But, yes, I will go start reading on compund effects.
You must tell us exactly what effect you are tyring to accomplish. That clip has tons of effects in it, presumably, I'm not going to watch the whole thing.
If you mean the blue clouds behind the girl, those are laser stage effects. Wrong forum.
Specifically, the video in the midle of the road which she walks thorugh or that appears, and then fills up the screen. Its the transparent video, and looks like its being projected onto water as you mentioned.
The joys of rights holder policies... "This video is not available in your country" *lol* Anyway, as David said, you need to be more specific. Provide a screenshot of the exact frame you reference and then we might be able to advise - or not, if indeed these are practical effects done on a stage.