I tested the animation issue on a second computer and it did NOT occur... then I added the free version key you uploaded and it started happening again. So I am guessing it has to do with that.

As for the water volumes, that is a shame, is there perhaps a way I convince you to implement a way to detect invisible passable entities (when inside) either block or model, as I am not using this function for water volumes, but physics volumes, trigger zones, ect. I have a video of this working here, hopefully this demonstartes its usefulness:
http://www.youtube.com/watch?v=OVYnrP32gFk
(the wireframe cubes you see are passable map blocks with data attached) terrain just wouldn't work for this. Worth a shot, thanks.