fluid particles are not replaced by boundary particles

edited February 2016 in Old versions
I am facing multiple issues here. I am trying to duplicate casewavemaker by importing external geometry into the domain. I started with filling up the domain with fluid particles followed by removing particles above a certain height and finally importing the geometry (.STL). Upon visualization, I found that the fluid particles remained inside the geometry. What caused this ? The fluid particles were supposed to be replaced by the boundary particles right ?
The other issue that i am facing is the lack of repulsive force between the boundary and the fluid. There isn't hardly any repulsive movement visible. Please look into the issue.
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