http://bugs.winehq.org/show_bug.cgi?id=23258
--- Comment #4 from GyB gyebro69@gmail.com 2010-07-25 14:12:28 --- Created an attachment (id=29831) --> (http://bugs.winehq.org/attachment.cgi?id=29831) terminal output
In current git (wine-1.2-422-ge158bb0) the water looks just like on my first attachment (not fixed for me.) Morrowind GOTY w/o the unofficial patches. I haven't tweaked the morrowind.ini.
Xavier, you didn't mention what gfx card you're using: I have a NV 7600 GT (driver is still 195.36.31). Maybe this bug only affects certain cards, like other shader-related bugs reported here.