Fluid not filling container completely I am using 2.70 with Cycles to recreate Ian McGlasham's "Alice Blender Fluid Cycles".

However, for some reason my fluid does not fill the entire text -- for some reason it only fills part of the text:  

  

Previously, this gap was much larger and I made the gap much smaller by increasing the Final Resolution of the domain object from 65 to 200. This was a HUGE improvement, so I assume maybe I need to increase the Final Resolution even more to have the fluid finally touch the walls of the container. However, when I see how finely the fluid mesh is already divided, it's surprising that's not enough resolution/faces to be able to conform fully to the container walls. 

Since the fluid mesh looks like it should have enough resolution (small enough faces) to conform to the shape of the container, I am wondering if maybe I need to change the Surface Smooth and/or Surface Subdivisions settings in the Fluid Boundary section, or do they need to be used at all? As you can see in the picture, I have Surface Smooth set to 1.0 and Subdivisions set to 3. I read that increasing these can greatly increase the render time and may also cause Blender to crash if you run out of RAM, and I only have 2GB of RAM.

So, in order to get the fluid to fully conform to the container, do you think I should:
- increase the Final Resolution
- increase the Surface Smooth
- increase the Subdivisions
- or some of each, and if so which ones  

Also, do I need to have the Surface Subdivisions set to 3 or can I turn that back down to 2 or lower? It takes so long to bake on my computer that I'd love to understand these settings and not have to learn by days and days of trial and error, so any help would be greatly appreciated!

Thanks!

Also, here is my current blend file.
The issue is (as already pointed out by Vader) your mesh is not manifold, basically meaning that it can't exist in the real world.

You can select non-manifold geometry by pressing CtrlShiftAltM in edit mode:



The reason all those edges are selected is because your mesh as no thickness. This will cause the fluid simulator (and a good many other things) to have problems.

You can partially fix this situation with a Solidify modifier (note that modifiers must be applied for the fluid simulator to take them into account), however there are still a few other problems.

I think you are better off starting over than trying to salvage this mesh, as even with the solidify modifier I don't think it will do what you want (I assume you want to have fluid everywhere except inside the letters).

An easy way to make hollow manifold text is by setting the Fill to None and adding a solidify modifier.