This is interesting. I'm not too sure if my logic is correct here or not, but we'll see.
I've seen someone say that the lead and mercury would form an alloy, OK to prevent this and let the theory continue lets say we have a capsule containing this mercury. It would then be allowed to stay in it's liquid state until impact. You have still got the problem of the free flowing liquid inside the capsule. I'm not sure what physics law they were teaching that day (years ago) in high school science, but do you remember spining the hard boiled egg and the raw one? I don't believe it would be accurate at all. To play this theory into a scenario, lets say you and you're target (which has the same gun as you, but with unaltered ammo) is 200 yards apart, do you really want to jump up and blindly spray inaccurate liquid filled bullets hoping you hit and possibly poision(though that's questionable) the target, or percicely and accurately pick him off?
I'm all for new stuff and experiments, and I'm sorry if it seems that I'm attacking anyone. I just don't think mercury is the answer. Has anyone heard of droping a BB (air rifle ammo) into the cavity of a hollow point? Lots of guys around here say it gives maximum spread and penetration. The construction looks to be just a regular hollow point with a BB crimped inside.