Hannes; it does work with defer all, I think, or no defer at all.
Klaus; what I sometimes do is make a mask from the boat object (screenprint from Lightwave topview, then paint mask in PS). It takes some fiddling to get the exact waterlevel area painted white, and with rough waves you'll have a bit of a problem. So everytime I use that boat I also load that texture and give it the same locations to displace the water down.