Hi, thanks for positive comments about my engine However, I don't like being considered a potential competitor of LE. It is a very good and complete engine, while what I do I just do in my spare time (I'm not even working for a gamedev company...). Of course I want to make it better and more programmers friendly engine but that's still a long way to go
I believe water could be adapted for LE - I'd be more than happy to know that algorithm I came up with is used more commonly so if anyone of you want to do this, do not hesitate. I will be also happy to help if there are any issues - just drop me an email (tomanw@gmail.com). BTW there is an article in which I described the technique used:
http://www.gamedev.net/reference/programming/features/ppWaterRender/
You can also visit my blog:
http://wtomandev.blogspot.com
where I describe many useful techniques and algorithms (or at least I hope so ).