@Nadester: Thats a good point you make about using an environment map, hope to work on that in the future.

Here is a demo of the shader (approx 3.8MB download) . I call it riverwater. The requirements are PS14 & VS11.
Tested on ATI Radeon 9200 128MB with Gstudio A6.20.2 Comm.

See the readme.txt in the ZIP.

If anyone has any additions, fixes, or comments please post!!! This shader has a long way to go.

Eric