I'm running an Ati 4890 and don't get any flat water, i can see waves, foam, etc.
The conf.ini is not yet documented enough to go fiddling in there so i haven't touched it.
However, i remember various people saying that because of delays on microsoft's part with debugging the new DX versions, the developers couldn't enable all of the features they had coded in time for the release, so they used placeholders for some. The water was one of those features. The final water version was supposed to be transparent and the player able to see a certain depth below the surface based on weather/light conditions.
In any case, if you can find a solution it would be good both for you and everyone else if you shared it here. Otherwise you can wait for the beta version of the upcoming patch to be released, which includes a complete revamp of the graphics engine to eliminate known bugs.
I think the patch (at least the beta) will not be too long, based on what we've been told in the latest Friday update. It's probably a holiday today in Russia, but maybe we'll get something within this week or the next. I don't have any inside information, i'm just making a guess based on what BlackSix told us in the update thread that work is almost complete.
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