Galadriel used a form of magic called divination. It can be done with mirrors, or crystals, magic seeing stones (as the palantir are) and with water.
I think that Tolkien had an image of Galadriel in his mind such as in this image of Circe:
Circe Looks Into The Waters Image
This is obviously a reference to Vivian, or to The Lady of The Lake, Nimue. (Aurthurian Tales.) All had seeing objects in their ownership.
The basin or mirror of Galadriel was highly polished on it's inside, to create the clearest image when water was cast into it. With the stars cast in it, and supposedly the star of Varda shining over it, and the use of her Ring, which is connected to Varda in some way, the waters (which were also blessed by Ulmo) would present messages to those who could discern them. Galadriel is old enough to understand and translate those messages, and clearly helped the Hobbits to understand them. The reason for her caution not to touch the water is obvious to diviners: her work might be ruined, as the waters and the mirror must be prepared in elaborate rituals, and blessed.
I do not suggest that you try divination if your religion prohibits it, but if you are allowed to and do try, you will see that it can open the mind to things happening in the world. I have not attempted it in some years. The last time I did was during Operation Desert Storm, and all I could see was red dust and war. I do not relish the use of such methods. It can be draining, and it can provoke feelings which untrained individuals cannot deal with. Certainly do your research before attempting any such divination.
Does that answer some of your question?
[ September 11, 2002: Message edited by: Tirned Tinnu ]