KurtS render is, as iker says, one of the best CG glasses I've seen and so I'm sure his method is correct but as pipcleo says, it's very counterintuitive.
Am I right in understanding from KurtS vector drawing on page 2 that there is a very, very small gap between the flat top surface of the liquid and the flat inner surface of the 'glass', as shown in Thomas An's diagram towards the bottom of page 1?
Also, is it correct to have the meniscus modelled on both the glass and the liquid? (This differs from Thomas's diagram but seems to work in KurtS great render)
I've been modelling slightly differently (with an open glass mesh) and it seems to look fine. Although it probably isn't physically correct, as brought up by MS in his original query. I might try a re-render if someone says my method is wrong?
e.g.

gives this result










- By Mark Bell
- By Edward Leibnitz