I am having the same problem I think. I am using a 32 bit 256x256 targa for the water cahnnel and a 24 bit 256x256 bmp dot3 image for the noise channel. It looks really nice and I can see the ripples of the water, but it is not animated. It looks like something needs to be done with the entities skill41 to cause the animation to happen? I have tried setting it equal to time and incrementing it by time and very small increments in a loop in the entities action. This causes the noise texture to sort of spastically jump, but does not give the smooth animation as you would expect to see. I think I am on the right track here, but a little help would be appreciated . Thanks!