Len,
check your CFS3 config set up, make sure the Dual render pass is disabled.
Ah yes I should delve into the water fx files that come with ankors D3D stuff, good tipDavid, I had this happen too, I don't remember what I did to fix the problem RATS!
I know any files from the "New environment files" will also cause this.
Several times when i was dancing with the different Shine-shader work by Master Ankor
I managed to have this happen.
Problem is right now I don't remember what I did to correct it
Another file that can cause this is the panoramic_cubic_test file in the effects/skybox folder..
Major Magee has a set that might help.