Kadri --- Yes the terminology issue was exactly my meaning. Always very hard to get things hashed out without using common set of labels.
Michael --- Now on the full transparency you're seeing the "black specks" problem on the left sphere. This problem has been around for a while. There was an earlier version of Terragen 2 where transparency worked, not just using the Water Shader, but also worked when turned on in Transparency option of the Reflective Shader, but it became broken in later releases of T2

On the earlier renders, the shadow of the Terragen displaceable sphere on the left always remains the shadow of a full sphere.
This little example is from that early T2 version before transparency got broken.