Kevin Fishburne sent along this video of his work-in-progress online game (and game engine) Sanctimonia, which demonstrates how the game will render water and terrain, and how the camera follows the player around.

He notes that as yet, the alpha-channeled transition tiles which allow textures to seamlessly merge have not been fully implemented, and also reports that the water ripples need additional work. That said, what can be seen here is very promising; the apparent scale of the world (in particular) is phenomenal. The textures are also pretty great.