Problem is discussed here
http://thefx.org/brain/index.php?/topic/70-particle-instancer/

You want to deform the inastenced objects or just deform the way the instancer moves.


See thing is once you deform a particle maya creates a NEW particle system that inherits position form previous particle system, additional attributes msut be manually copied over to this new particle system.

Likewise the isntancer needs to be recreated to the new particle object.

MOvement is not possible du to the fact that they are explicitly driven, tough nothing says you cant create a 3rd particle sytem on top of the old one.