Snap!! I didn't include the texture in the upload file!!

Silly me
Quote: "try changing it to dx9 "
Should I use 3DS MAX to change this?? I have no idea how to do that

Could the problem persist after the conversion?
Here is my updated code:
Rem ***** Main Source File *****
sync on : sync rate 60
`water effects
load effect "ocean.fx",1,1
LOAD OBJECT "water.dbo",1
set object effect 1,1
do
text SCREEN WIDTH()/2,SCREEN HEIGHT()/2,"FPS: "+str$(screen fps())
CONTROL CAMERA USING ARROWKEYS 0,1,1
sync
loop
And again, the project (with the missing textures) may be downloaded. Again I apologize for forgetting to include the textures.
Monsters are Ready to spill their Dark Sercrets......