placing <> around AlphaX just makes the water render as a black plane.

I have tried using >>

material mtl_ffpwater
{
skin1=waterbump;
event = mtl_ffpwater_event;
effect = "efx_water.fx";
my.transparent = on;
my.alpha=50;
}

But it doesnt accept transparent or alpha flags because it gives me errors when i run it.

I have tried adding transparent/translucent and alpha flags to the water action, view and material, but so far no look in making the water have alpha.
I am guessing the solution is to code it into the shader, but i am no good with programming shaders.

You mention alpha states and blending operations - i have no idea what these mean, lol.