Animation in Terragen 0.9 is pretty limited. The water *does* "animate" by default, but it is extremely subtle, just a progressive variation of the noise shader, and you can only see it with a stationary camera close to the water. You cannot change any of the settings related to this either. So essentially water animation in TG 0.9 is not really functional.
TG2 on the other hand, where we are now focusing all development, has much more power in animating water and virtually any other aspect of a scene. The animation controls are still somewhat limited, but with a little work you can animate nearly anything (except object distortion).
- Oshyan