Perhaps that's happening because that bumpmap texture it's size doesn't match your model's size?
I can't remember whether or not the shader changes the tiling (didn't think so), but I do know that those textures need to have the correct size.
It might also simply be the water model that has an error in it. It looks like the polygons on the left side and the lower side are all way too high. I think you should also take a look at your model in MED, perhaps it looks strange there too and then you need to change it a bit.
It's looking good already by the way, hope you solve this little problem too,
Cheers