Hey guys, thanks a ton for the responses...I'll try to respond to them all:

**CobraEye: **
Yeah, I noticed the globbiness too.  I cant figure out what does it...I think it's the direction of the open ocean node mixed with the direction of the sun.  Notice it doesn't happen right in the beginning, it's when you start getting more vertical and looking the other way.  If it was my guess, it's the refraction and reflectance of the water material that is causing the issue.  I posted 2 images below...one with shadows on for th ocean material, one without.  Could the # of internal reflections and refractions cause this?

I'll add maybe some sort of sound when you enter the water...a splash of sorts.  I need to smooth that part out a bit too and get the caustics more fluid.

Clouds I can work on...man I wish I had Vue 6 for that part.

BobbyStahr:
If it were a plane, I could see the bump size being the issue.   Who knows, maybe it is somehow.  I'll definitely take a look.

I will be adding sound in the near future.

Dale B:
The OO node is applied to a terrain that is higher than the ocean floor.  I double checked the ocean up close and it never dips below the ocean floor.  The elements I have are:

1. Terrain - Open Ocean
2. Seafloor - Imported geometry
3. Infinite Ocean plane below that for the horizon line
4. Infinite ground plane beneath that to cover the places where the seafloor doesn't reach.

All other notes are...noted.  I'll apply some of it for sure.

Lastly, I'm posting the Vue file with only the breakwater, open ocean terrain, and sea floors contained if anyone wants to play around to see if they can fix it or find the issue.

-Ryan Spaulding
 VueRealism.Com