Yes, participles look like verbs but function as adjectives. They may be present participles, as in "soaring plane," or past participles, as in "broken window" or "cracked ice." Gerunds are verbals that function as nouns. In this sentence, "running" is a gerund: Running is my favorite form of exercise. Here, "running" is a participle: The sound of running water lulled us to sleep.