Ok I've seen spam e-mails about this and they're easy enough to delete but when Reuters does a piece about a Japanese company claiming they can drive a car for an hour at 50mph on a liter of WATER it makes me confused. Yeah my first reaction isn't OMG! all our problems are solved! It's much more WTF than OMG. All it says is that,
"Once the water is poured into the tank at the back of the car, the a generator breaks it down and uses it to create electrical power, TV Tokyo said."
You can break water down into Hydrogen and Oxygen and make power from those, unfortunately I recall quite vividly from my chemistry classes in high school that it takes considerably more energy to break the water down than you can get from the separated elements. Did they invent a catalyst that breaks down water? is it a total sham? I really don't know, but I won't say I'm not curious.