The Farseer.BMX physics module has basic buoyancy and height field fluid simulation. Have you looked at the source for the fluid controllers in Farseer.BMX to see if it would be of any help?
The farseer demo application along with the videos posted seem to have similar functionality to what you posted above.
EDIT:
on a side note these 2 articles have good information for implementing fluid dynamics, but it's more for simulating currents and forces underwater rather than creating waves on the surface:
Practical Fluid Dynamics: Part 1
Practical Fluid Dynamics: Part 2
I feel like these types of systems would be good for simulating objects that move under water causing currents and water-flow to affect other underwater objects.
The farseer demo application along with the videos posted seem to have similar functionality to what you posted above.
EDIT:
on a side note these 2 articles have good information for implementing fluid dynamics, but it's more for simulating currents and forces underwater rather than creating waves on the surface:
Practical Fluid Dynamics: Part 1
Practical Fluid Dynamics: Part 2
I feel like these types of systems would be good for simulating objects that move under water causing currents and water-flow to affect other underwater objects.