You've got the same problem as I had for months with EB 0.8!

I finally solved it with following this thread : http://www.twcenter.net/forums/showthread.php?t=100384

Especially the Page file helped for me.

And if it works, I advise you to download the old water sprites from the EB-website's download section. Or else your game might became very laggy.
But try the new sprites first ofcourse!