I have the same strange bahaviour than MasterChief. The demo runs fine. When i use the shader in my project i get the error : Malfunction W1550, Error in effect: water_fx. I use the cube and the water hmp from the demo. Whats wrong ?
SteemPipe: would you be able to able to convert the pixel shader to HLSL? that way it would be much easier to add improvements.. such a fresnel term..etc