Make sure "Disable Water Animation" is NOT checked in cfs3config overrides.Ankor I wonder if its possible to create the appearance illusion of dynamic movement in the water rather than a static rendering?
Also it depends on the water texture you use, stock CFS3 water doesn't have any good movement animation, it appears more like waves are bouncing up and down without moving sideways.
Finally it may make sense to play with "Water Detail Texture Size" slider in Texture Info config to adjust the size of waves.