It's Jasc Paint Shop Pro 9
If you have it you go to "Effects" and then "Distortion" and there is a "Ripple" effect...
You can play with all the settings, the one I did was just the basic one that it is already set to.
NeedKarma might be able to help you find it :) *wink wink nudge nudge*
EDIT - Beat me to it ;)