Thanks mike ,
the process is very simple but I forgot the .3dr file at the office I will post it tomorrow morning ( its 2:01 am here ) .
The trick is simply. Make a large plan ( depending on your level area ) in your 3D modeler, Assign a water map for it ( not really needed just to check the UVs ) tile them accordingly to your level scale ( oceans for example needs more tiles . ) export this simple plane and use it as new skinmesh in 3Drad.
Add a terrain / skybox ( preferably cladenstines skies ) turn on " Visible in Reflections " for both.
Add your newly created Skinmesh ( I called it Water Plane ) .
Now google for a nice water normal map . I used this in my demo :
http://bp2.blogger.com/_awzb2-vllx8/RvUZ3T22t9I/AAAAAAAAAKI/cy5A2oYv6Po/s400/normalmap.JPGplace the normal map accordingly in your Water Plane folder ( 00_nm.ext I guess )
open the properties for the skinmesh. choose bumpy and glossy or bumpy ... wont matter
Turn on Env mapping ( dont supply a .dds file )
use 0.1 and from 5 to 20 ( according to the fps ur trying to achieve and the number of moving objects in the level ) .
ok now the newly created plane reflects the terrain and skybox but doesn't look like water alot does it ?
ok go back to the dialog , make it spin in the y axis ( around itself ) by 2 .
and use the " Burnout " mode , and check Depth sorting .
click ok , it will look weird I know ... just ignore it for now .
Clone this whole skinmesh , place it just beneath the newly created one by a very very small distance
go inside it , remove burnout use default .. and give it a slower or faster value than 2 in the splin area ( Y axis ) .
go back to your level and test it

VOILA !
This method is not the best but its the simplest, try experiencing with more values and spins to get a better effect than mine.
The best thing about this process its just needs 2 skinmeshes no code - no lotsa objects .
Of course it could look alot better if we can use animated textures
or Vertex animation ( to make a wavey / noisey water ) .
but for the purpose of having real simple realistic water , its serves

one more thing , the Water shader I am talking about is not BLUE , it takes its colors from the skybox and terrain , so its a universal thing that needs no tweaking or so to work.
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Hope I made it simple .. Cuz I dunno how to explain myself

I am glad you like it , hope you all try better setting and achieve more believable waters
Right now i am gonna work on a cloud/sly system ... not just a skybox , will post results later
