I have uploaded (2) different files. The effect is quite different than the first riverwater demo at the beginning of this thread.

It is still necessary to have pixelshader 1.4 and vertexshader 1.1.

Each file is about 2.8MB and as follows:
riverwater without waves
riverwater with waves

@Taros: Yah... I tried, fiddled with different things and could not get the envmap thing to work right. I am with you and am not going to give up. It's frustrating at times, but this is how we learn. Thanks for the contrib and the words.

@Num1BushFan: I have not gotten anything optimized yet. I hope to get some things figured out and optimized as such as I learn more. In case it helps for performance on someones machine, a version without mesh deforming is avail.

Later,
Eric