ijay
Member
Okay, it looks like you're missing the correct file in the the standard game install. The original one from Microsoft was not made correctly (wrong patch sequence, and missing Alpha channel). I probably should have included the corrected one in the shader package, but it hasn't come up as an issue for anyone in a long time so I forgot about it.
http://www.sim-outhouse.com/sohforums/showthread.php/84267-This-Could-Be-Very-Interesting/page4 Post #99 has the file you probably need.
http://www.sim-outhouse.com/sohforums/showthread.php/84267-This-Could-Be-Very-Interesting/page14 Post#332 has an example that looks like yours.
Additionally, since the actual sky and clouds are being used to create the surface reflections, AnKor is no longer using this file for anything in his shaders that I know of, so I'm a little surprised that making the change still matters. Please, let me know if this fixes the issue.
This didn't rectify the issue but did a complete reinstall and it's now working perfectly.....................
Thank you for all the help