You can try to set the height multiplier to 0.01, choppy multiplier to 0.00007 and patch size to 2560.
Also it seems that you have to delete the inner edge of you water plane.
In seems that Maya 2011 has a bug: setting small values in the Attribute editor doesn't work. If you set an attribute to 0.0001, the command that is executed is setAttr attr 0, not setAttr attr 0.0001. You can use the channel box or the Window > General Editors > Attribute Spread Sheet.
Also it seems that you have to delete the inner edge of you water plane.
In seems that Maya 2011 has a bug: setting small values in the Attribute editor doesn't work. If you set an attribute to 0.0001, the command that is executed is setAttr attr 0, not setAttr attr 0.0001. You can use the channel box or the Window > General Editors > Attribute Spread Sheet.
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