It's a graphic "artifact". It's caused by the Antialiasing interacting with the transparency shaders that get the information from the computed z-buffer.
There is no fix if you use antialiasing and transparent water at the same time.
And both of them are responsible for SH4 looking so nice.
PS: the green border (and some times the messed up fonts) on ATi cards are caused by the 2x and 6x Antialiasing. Use 4x or 8x to remove the green border.
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Kilroy was here
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