Reality Factory

I make a box, and I check the "wavy" thing and it doesnt do the wavy water thing. Anyone know why?

I never have quite figured that out, but what I do know is too make wavy water you need to use the EChaos entity:

http://dhost.info/realityfactory/onlinehelp/EChaos.htm

that just animates the texture, but doesnt make it wavy.

I would not use the wavy water box, this is a really old feature from genesis and first can look strange if you don't use it correctly(correct use includes that you overlap the brush with others, if you don't do that the) and also it slows the rendering. All it does is moving around the faces of the brush a bit.
For real water waves you would need a lot of them -> Slowdown.
Another disadvantage is that is moves it as fast as the rendering speed is, so on a fast computer it moves faster than on a slower, making it look different on differnet computers.

But you could try to use BumpMapping and then use the EChaos or the FlipBook entity on the BMB_texture. Maybe this could give you a desired effect.

how do I do bump mapping