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Take a look at the water in danger's pics on the previous page, he must have a great hardware set-up too. (I didn't know it could look that good either)
To see the updated water render please modify the Water section in the file conf.ini in the [Render_OpenGL] section.
* Water = 0 or 1 – No changes in version 4.03.
* Water = 2 – This mode is visually similar to water = 3 but it runs on ATI cards 9800, X800, X1800 and later models.
* Water = 3 – Fast render mode with Vertex Shaders 3.0 (NVIDIA 6600 and later models)
* Water = 4 – Better quality mode with Vertex Shaders 3.0 (NVIDIA 6800 and later models)
Reminder:
ATI supports modes: 0, 1, 2
NVIDIA 6600 and later models support: 0, 1, 2, 3, 4
NVIDIA cards before the series 6xxx support 0, 1, 2 (2 is not recommended)