First set diffuse_color and specular_color to pure black. Then set reflection value from 0.1500 to 1.0000. In your render option make sure raytracing is checked and set raytrace bounces to 4. And give the floor something to reflect off of in the background. It is probably grey because your background is grey. Not sure what is causing the waveyness. If you have texture filtering on try turning it off. Also try turning one of the shadows off on your lights, the shadows could be interferring with one another.