Quote: "Since its a fixed grid of 80x60 points, this should be doable. I suppose it would be the very bare bones of maybe what a water shader is. Or, a faster function to recalc the normals on the cpu."
Do you mean something like a flat terrain where only the Y coordinate changes? If so then a fast update procedure should be possible. As you say, 80x60 points shouldn't be too much for the CPU to handle each frame.
I don't know of a simple way of doing it on the GPU unless you are using a known function, such as cos() or sin() to do the deforming.