Yeah, getting rid of water is fairly easy. Its trying to level it out that I have trouble with. Theres an inlet near my house that looks more like white water rapids than a section of ocean. Haven't been able to figure out how to level it.
Let us know how things go with the portal, Robert. The Nether is an interesting place to say the least.
And if you guys are willing the make your servers public, I'd love to visit. Single player is fun, but it gets a bit lonely sometimes, knowing you're the only person in the world.
I figured out through trial and error how to make springs in an arbitrary body of water. Basically, you have to place water in a checkerboard pattern.
If you don't know how to make an infinite spring, it's easy. Gather up 2 buckets of water, dig a 2x2x1 hole, then dump one bucket into one corner, and the other bucket in the diagonally-opposite corner. Voila! You can pick up water from this hole as many times as you want and it will never go away. And when you want to get rid of it, just fill with dirt (or whatever) and it's gone.
I usually do that then get 9 buckets of water to go around leveling things off. I had to do that for the moat around my castle.