I asked the same question awhile ago at the Gearbox BiA forum about how they did their water surfaces. Found out from one of the developers that they heavily modded the Unreal Engine for a variety of effects they created for the game. Same goes for the effect weather has on foliage in the game...it's just a little more than using texpanners or oscillators. although in RO this can work nicely as I found out myself. But generally speaking, BiA's goodies are all hard coded.
whoa all this time i been playing RO, and i havent check the forums for a while. and now im finding out about the big realease RO is gonna have soon and also i just saw the vid from Darkest Hour and to tell u the true im very impressed what u guys have accomplish so far. keep up the good work and i cant wait for this.