Hmmmmm.......I'm not sure what to tell you. Using what I did above and your flattened cylinder with "nice water" apllied in world space it works. Are you using autokey or manual key? The only thing I can think of is that your keyframes aren't saving. Are you sure you are setting the keyframe after you move the scrubber and adjust the material? If anybody else can think of what going on. I'd send the file to you but you can't import the animation into your scene. I can send it anyway if you'd like to look at it.