does anyone know...

Where to find 2D special effects algorithms like water rippling?

like these?

http://www.anfyteam.com/

CFXweb has arranged several Java Applet Coding Contests (JACCs) with topics like image distortion, light rays and liquid. All the entries include the source code. CFXweb also has links to several Java demos, which include both 2D and 3D effects, but the demos rarely include the source code.
http://www.cfxweb.net/java.php

Let me extend my question by asking if anyone knows where to find tutorials on the subject? The cites such as cfxweb have great examples and open source code but offer little for novice programmers starting out in special effects. Links to any sites that offer more will be greatly appreciated.

You could start with “The Art Of Demomaking” by Alex Champandard:
http://www.flipcode.com/demomaking/

Although the code examples are in C++, they could be easily implemented with Java.