If you put the mod in #sas/Mapmods/Maps/tex its not gonna work.
Example for a correct path: #SAS/CarsmasterWater-512 v.0 02(3.17)/Maps/_Tex/water/FoamNV40.tga
But I'd rename this
CarsmasterWater-512 v.0 02(3.17)
to this
CarsmasterWater-512
The other thing is that you have to select a weather setting Hazy or worse in order to get the weather dependant wave types. In clear and good weather the wave animation will be different only, I think. I'm using an older version of this mod and I did not notice major difference except in the amount of whitecaps on waves. Btw water=4 is not a requirement, I'd suggest water=3 for best performance. This is a "simple" texture replacement mod for stock stuff so it should work in any game version and modpack without any issue.