Although in TG2 you can animate virtually anything, it would be extremely difficult to achieve a realistic result for the kind of scene you mentioned. This is not so much because of the limitations of TG2 as the limitations of CG in general. Realistic wave-shore interaction is possible (see Flags of Our Fathers), but it requires a tremendous amount of work and very capable general-purpose software. In the future we may be able to provide some form of partial solution to this, but for now the manual animation you could do on water displacement, powerful as it may be in concept, is not likely to get you good very realistic results.
If you do want to give it a shot and you have the "Deep + Animation" version, you'll want to start with the "SA" (s-curve followed by an 'a') button that shows up next to most settings. This allows you to create keyframes. Choose an initial value for a setting, set a keyframe, then change to your target value and set another keyframe. The values will be interpolated between your two settings and if you render a frame sequence you should see it animated. You just have to animate the right values...
- Oshyan