On the very first level and beyond all the water is black.....the sun refections seem to work, but the water is black.....
Very strange....
I'm using an Nvidia 9800gtx card with the latest official driver.
Anyone else have the issue?

Nice, found a fix...

If you apply the "geforce 3 converter mod" and then the "Graphical Revision Mod".

The issue goes away!

You will see some slight flicker in some textures but it wasn't as bad as the water being all black...

Here is the link to the mods...
http://www.gog.com/en/forum/giants_citizen_kabuto/giants_mods