Well, it appears that Blender may have reached another milestone in the pursuit of 3D clouds!
Alan (aka RipSting) writes:
I've been doing a lot of atmospheric modeling lately and wrote a script that generates some cool interactive volumetric clouds! Not only can you see the shape of your clouds in the interactive 3D window, but you can animate their properties with IPO curves.
When you're done automatically generating points, you can edit them and delete the clouds that you don't want. Then, it turns the clouds you DO want into faked volumetrics. I say fake, because it will only render correctly from the camera's perspective, so it won't work that well yet with extreme reflections.
Here are some sample renders and animations:
You can download the latest version of this exciting script and keep up with the latest development news and discussion at the blenderartists discussion thread.