http://bugs.winehq.org/show_bug.cgi?id=8867
--- Comment #16 from Raymond Hawkins rayhawk2008@hotmail.co.uk 2009-09-04 15:45:45 --- Created an attachment (id=23433) --> (http://bugs.winehq.org/attachment.cgi?id=23433) Oblivion water
With a fresh installation of Oblivion with no changes to Oblivion.ini or anything in a new wine prefix (version 1.1.29), water looks perfectly fine -- the same as in Windows.
I think this problem has been solved.