I read a little bit more about this and it looks like the technology is far from making vehicles water powered, but in the meantime it looks very promising for doing things like running nuclear power plants. Pretty interesting stuff.
http://www.rratch.com/Misc/WaterFuel/WaterFuel.wmv
The Technology
A unique type of hydrogen/oxygen gas mixture
Our technology centers on the ability to generate a unique type of hydrogen/oxygen gas mixture (a “unique gas”, which we call “Aquygen™” gas) on demand from a lightweight, compact machine that uses the water electrolysis process as its underlying technology basis.
This unique gas is infinitely stable until it comes in contact with a select target media. Then it sublimates, causing a molecular surface exchange of certain elements, reacting with such excitation as to cause temperatures of up to 10,000° F, the temperature of our Sun’s surface, which is currently the limits of our ability to measure.
The ability to create this stable, unique gas on demand from a water electrochemical generator is of great strategic importance, especially because (1) it offers a workable energy level per pound of fuel that is ten-to-twelve times that of gasoline; (2) when combusted/ignited, it causes no hydrocarbon effluents such as NOX, nitrites, nitrates, etc., and (3) its by-product from combustion is pure, environmentally-friendly water.