[David Brinza]

Here's a website where a mixture of carbon monoxide and hydrogen is produced by running an arc discharge with carbon electrodes in water:

http://jlnlabs.imars.com/bingofuel/html/aquagen.htm

As far as "rearranging" the atoms in water (i.e. H-O-H to H-H-O), that just cannot happen (atomic hydrogen has only one electron and can only form one covalent bond).

Another consideration in this claim is how much energy is put in versus how is available. The laws of thermodynamics state not only can you not gain energy but you won't "break even". Any combustible products generated are going to require more energy (perhaps MUCH more) than will be released upon combustion.

On the more serious side of addressing energy needs, there's a lot of work going on with fuel cell research (hydrogen vehicles, etc.) see, for instance: GM Advanced Technology.

There's no "magic" answer to technological problems, just clever solutions developed by people with a good grasp of the fundanmentals, creativity and inspiration.