Alright. I've had this annoying problem for about, eternity? I finally give in and decide to ask for help. (No, not elitist. Simply lazy, which is why I could not bother looking for an earlier post of the similar situation for long)

After all these attempts (during one and half year, including hardware upgrades/changes, reinstalls etc.) I still remain with nearly GREY water with barely any waves, and which reflects only messy sunlight.
(Picture incoming if necessary). Setting up one of these 'improved/enhanced water' mods causes the water to turn cyan blue, with the non-existing waves vanishing for good.

Yeah, that's it, shortly. And it has been tried on both of the below listed systems - both malfunctional. There was once a PNY GeForce 7600 GT on the System I, had the same problem in a worse condition. (Sorry for the possible overdetails below ) Attempt not 'ur suxor oc sux it', for they haven't been overclocked for long.

System I:
Motherboard: ASUS A8N5X (S939, PCI-E X16, DDR)
CPU: AMD Athlon 64 3800+ 2.4 GHz (OC @ 2.9 GHz)
RAM: 4x 512 MB Kingston DDR 400 MHz (OC @ 433 MHz)
VGA: MSI Radeon HD 3850 256 MB OC (Memory: 1656 MHz, GPU: 690 MHz)
OS: Windows XP Home SP2
Resolution: 1152x864

System II:
Motherboard: ASUS P5N-D (LGA775, PCI-E X16 2.0, SLI, DDR2+Dual-Channel)
CPU: Intel Core 2 Quad Q9450 2.66 GHz (OC @ 3.69 GHz)
RAM: 4x 2 GB Kinston ValueRam DDR2 800 MHz (Dual-channel) (OC @ 1013 MHz)
VGA: 2x MSI GeForce 8800 GT 512 MB OC (SLI) G92 GT (Memory: 2100 MHz, Shader: 1800 MHz, GPU: 730 MHz)
OS: Windows Vista Home Premium SP1 (both x86 & x64)
Resolution: 1280x1024

I'm guessing that when you were first running the game without mods that the water was OK, and that it changed after using various environmental mods.

I'm thinking that there's a chance that there might be files leftover from previous mods that are still being used, or that the water settings in your .ini file might need to be reset to defaults, or how they would be when first installed.

Been like this ever since I installed the game. Every time, so no modification can have caused it. Also, friend has the same problem on one of his systems (GeForce 6600). On his other one it seems to be fully functional (GeForce 7600 GT).

Although, I never tried it without Shivering Isles.
I shall check the .ini however.


Edit: And yes! All the water reflections were set to 0 by default - seems to be working now.

Thank you for a life-prize quide (No reward available, though!)

(And oh how I hate when something that pisses off for a lifetime, is fixed in a few clicks)