2. From where do u get the drops ?
3. What is ur camera settings ?
1. I used a pillowcase, I think fabric is much better than using paper as a background. The surface of the paper can reflect back the light of the flash and that sort of disturbs the image. Firstly you have to observe the motion of the falling drops and then place the fabric/ any picture beside or behind them. You would see at once that the falling drops have taken up the colors of the fabric/picture behind/ beside them...Secondly, you have to peer in closer at the drops (remember to keep an external light source, if you're taking shots in a place that isn't so well lit. I used an 8/11 watt bulb here.) When you would peer in the drop, your eye would try to focus on the activity *inside* the drop, eventually that curiosity would lead you to focus the same way through the lens of your camera. It all about focus and composition.
:) Remember to keep the fabric or any picture *inverted*, because the water drops work as lenses themselves and only then the upright image you desire would be achieved as *refraction* through 'em.
2. I use a normal bathroom or a garden tap. In meticulous macro and high speed photography, lighting is very important.
3. Like I stated before, I use manual settings with -0.3 EV flash, 1/1000 shutter speed (SONY H5 has certain limitations and the max shutterspeed mine offers is 1/1000, With SLRs and DSLRs a shutterspeed of 1/4000 is best to be used). Use a closeup lens, If you think the need arises!
Believe it or not, i'm a newbie too in this field - It has only been a year..I remember mailing people for advices and techniques and hardly anyone used to, and I know how frustrating that can be..so feel free to ask me whatever you have to about macro/liquid photography!