The SecondLife 'WindLight' client (still beta-ish), has really nifty looking water effects, ripples, sparkle... and Reflections!
Such a nice visual improvement that I've lept from my lofty sky platforms and have resumed tinkering down at sea level. The gondola seen above has been rebuilt and re-scripted and behaves as one would expect a boat like this to. It handles like a dream. You can even kick-stomp the keel to pop the nose for a quick 'bootlegger' turns!