The film plays fine for us.
Here is what we would like you to try.
Make sure you have not forced any graphic options in the NVidia control panel. Use the defaults. Very important.
2) Next, try disabling "Post Lighting" and setting the "Maximum Texture Size" to 1024. Then test it. If the problems go away, then let us know.
3) While in the game looking at the water (use CM eye to position yourself), minimize, then maximize to see if the water issues clear. If the problems go away, then let us know.