This is a great texture to use for normals for a water material, for use in a game engine. Instrucions for Blender 2.49's game engine are below.
A water test file is included with the download.
1. Create plane
2. Create new material, call it Water.
3. Change colour to an aquatic blue (rgb = 0.296, 0.650, 0.744)
4. Go to Textures and create new texture. Call it water_animation_map
5. split 3D view and change one side to the UV/Image Editor window. in that window, open up water_animation_map.jpg
6. select your object, and with water_animation_map.jpg visible in the Image editor window, press TAB to go into edit mode, and press CTRL-U and click unwrap.
7. In the UV/Image Editor window click View>Real-Time Properties
8. In the Real-Time Properties box, click Tiles and change the x and y values to 10. also click Anim and change start to 0, End to 99, and speed to 15 or higher, depending on the desired velocity of your water.
9. back in the buttons window, in the textures panel, select the water_animation_map texture, select Image texture type, and load the water_animation_map.jpg into that slot. (It will be in the drop down list)
10. Under the Map Image section in the texture window, select Normal Map.
11. Go back to the materials window and go to the Texture Panel (on the far right of the Materials window). select water_animation_map. go to the Map Input tab and check UV. Then go the the Map To panel and deselect Col, and select Nor. Change the Nor value below to around 0.86.
12. For transparent water, in the Materials window under Links and Pipeline, check ZTransp and change the alpha value under the Material tab to around 0.652
13.For reflective water:
a. click an empty texture slot, change the name to Spec and add a new file texture. load ANY render (should be something that matches your scene at least a little)
b. back in the materials window go to the texture panel, select the new Spec texture. go to map input and select Refl (reflectivity). Then go to Map To and select Cmir as well as Col. in that same tab, change the Mix type (drop down menu) to Overlay, and adjust the colour value to your liking (I use around 0.176)
**NOTE: you can any values including colour, normal value, alpha, and specularity to your liking.**