Regarding water settings
ATI use 1&2
Nvidia use 1,2,3&4
Perhaps a complete uninstall of the drivers and a clean up with Driver sweeper 2.1 if you can find it if you cant I'll up load it for you.
Just been given this set up for your same card on TS3 By 6BL Brando for Open GL which you should be running in that mode and not Dx
I didnt cross check previous setting posted so if its duplicated my bad
[Render_OpenGL]
TexQual=3
TexMipFilter=3
TexCompress=0
TexFlags.UseDither=0
TexFlags.UseAlpha=0
TexFlags.UseIndex=0
TexFlags.PolygonStipple=0
TexFlags.UseClampedSprites=0
TexFlags.DrawLandByTriangles=0
TexFlags.UseVertexArrays=1
TexFlags.DisableAPIExtensions=0
TexFlags.ARBMultitextureExt=1
TexFlags.TexEnvCombineExt=1
TexFlags.SecondaryColorExt=1
TexFlags.VertexArrayExt=1
TexFlags.ClipHintExt=0
TexFlags.UsePaletteExt=0
TexFlags.TexAnisotropicExt=1
TexFlags.TexCompressARBExt=0
TexFlags.TexEnvCombine4NV=0
TexFlags.TexEnvCombineDot3=1
TexFlags.DepthClampNV=0
TexFlags.SeparateSpecular=1
TexFlags.TextureShaderNV=0
HardwareShaders=1
Shadows=2
Specular=3
SpecularLight=2
DiffuseLight=2
DynamicalLights=1
MeshDetail=2
VisibilityDistance=3
Sky=2
Forest=3
LandShading=3
LandDetails=2
LandGeom=3
TexLarge=1
TexLandQual=3
TexLandLarge=1
VideoSetupId=17
Water=2
Effects=1
ForceShaders1x=0
PolygonOffsetFactor=-0.0625
PolygonOffsetUnits=-3.0
.