Flash. The best tool to make grafical websites. That melting thing looks to me like he has used a mask. I must say that I am impressed with your use of XML files. For my new site I will try to use a Database (mysql) and flash (asking for trouble I know).
I know next to nothing about mysql...best of luck, your site is great BTW!
I used a mask as you guessed for the melting effect...never built a site before and so learning a lot. I was waiting for something I could work on and hold my interest, so a fansite for <img src="/ubbthreads/images/graemlins/beyond.gif" alt="" /> is a good one.
I believe when you do something like this you should do it to further your knowledge. That's why I'm using xml. It's a pain at first, but makes things soooo much quicker to update when you get the hang of it. <img src="/ubbthreads/images/graemlins/mage.gif" alt="" />