I absolutely love your product, there is nothing else like it out there. I tell every hobby shop I go to that your stuff is the best. I like a lot of the Woodland Scenics products, and have used their Water Effects in conjunction with the Magic Water for rapids, waves, etc...for waterfalls, but their water product (not the Water Effects, the water pellets you melt) like yours isn't even close, it has a yellow tint, sets up too fast, is hot, and certainly is not Magic Water.
From reading your insert, etc. I see you like to hear back from customers on things that work for them when using Magic Water...I thought I'd share a few below.
Dr. Ph. Martins Bombay Ink/India Ink is awesome for dying the magic water and comes in a wide variety of colors and is available at most craft/hobby stores...you were right in your directions, it doesn't take a lot of dye, just a couple of drops to get the color you are looking for when shading Magic Water.
I found that if you let Magic Water "set up" for a bit, and then use a small spoon type device that you can actually drizzle it fairly well and get a waterfall effect without having to use another product like Water Effects, or DAP Crystal Clear Silicone, both which work well, but still are not Magic Water. I use a blow dryer set on low as I drizzle the Magic Water down the face of the fall, it helps to tilt it back a bit so it doesn't run quite as fast. I do a lot of outdoor winter scences for my Department 56 village and the colored Magic Water against the white backing of the snow covered mountains is easy to tell and control during this process. Although you had expresed that the pink and blue types of foam work well to held Magic Water, the white variety works as well as long as you use a closed-cell style and for an added measure, I just always paint on a thin coat of Magic Water to create an initial barrier. I use a lot of foam cutting devices that "seal" the foam as they cut/burn, making it water tight for Magic Water.
Anyways...I'm working on a scence for next year's display involving multiple mountain ranges and waterfalls...I'll send you a picture when I'm done.
Thanks again, after doing much much research there is no finer product for achieving realistic looking water displays than Magic Water!
St. Clair High School
"90% of the game is 1/2 mental..." Yogi Berra