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I have tried both fogemitters, caw's waterfall effects spawner and failed testing the waterplanes.
In my big world Stranda I used caw's spawners in the waterfall, and fogemitters on a lot at the top. I also found a splashing effect for the bottom of the waterfall. You can see the result on my profile here on mts. It's still available there.
You have to expect some fiddling to make the effects work as you like, even adapting the terrain is to be expected.
The codes for the fogemitters are available for downloads if you google for it. Make sure you find the last one, for the last exp.pack. There is also quite some mods available for them. I think there is one to make them available in caw. One also exists to be able to lift them up and down.
When it comes to water dropping out at the edges. You have to keep working at it. You will probably need to have a 1 tile edge or something. I think I covered it up with bushes and trees.