Maybe the problem in the pic is the one that Ryan mentioned. I didn't think it'd be that severe, but then this terrain is covering very large real world extents. I 'm considering the goereferenced route. In the long run it'll probably work out better to set up a tgd for my project data.
I set up the sphere as you suggested Dune, but I can't see any evidence of a water shader in the preview.
I opened up the sphere shader, and changed the parent shader from the default to a Surface layer -> input node of water shader -> sphere shader. I changed the sphere radius to 1.2 just in case it was hidden underneath the planet shader.
Ah, looking at the sphere the default created does not share the same radius as the planet by default. It's only a sphere after all, that makes sense. I'm using the centre and radius for the planet now, and I'm seeing water in the preview.
monks