Gray water problem

Recently I have gotten a unity 3 license and i have been working on a game. But after I made the terrain and everything and I went to add the water I went into the project panel and dragged Daylight Water from the Water (Pro Only) folder into the scene. But when I did the water is gray for some reason. http://s1123.photobucket.com/albums/l557/drbendable/?action=view&current=Graywaterproblem.jpg

During game-play a error shows up at the bottom in yellow http://s1123.photobucket.com/albums/l557/drbendable/?action=view&current=wateraftergameplay.jpg&newest=1

I have no idea where to go from here or even where to start to fix it. All I have tried is to re-import the assets and restart Unity and try again.

All suggestions will be greatly appreciated

Ben

Well, first of all reimport the water asset, otherwise watch in the folder SCRIPT and here you should find the water fx Good luck!!