I know that this info has been useful to several people. Could it please be added to to KB for future reference.
Great news for those of you who, like myself, had given up hope of fixing the water shimmering issue. I've finally cracked it!
What I did was a clean install of WOI, I then extracted and checked the Israel Data.ini and noted the following parameters:
[HeightOffset]
LowDetailMesh=-1.0
WaterMesh=1.0
With the default setting I was getting a bit of shimmering but not too distracting, then I applied the latest patch, the result: horrible shimmering.
I checked the new Israel Data.ini after the patch and found that the parameters had been lowered to those recommended in the Combat Ace KB, i.e.
[HeightOffset]
LowDetailMesh=-1.0
WaterMesh=0.8
So I decided to go against received wisdom and increase the parameter, finally arriving at the following:
[HeightOffset]
LowDetailMesh=-1.0
WaterMesh=1.8