Ok took a look at it.
I am not sure what you are trying for here so I can only say what I get, your wave is animated it vibrates at a very fast rate if you are trying to achieve a slow swell you are going to need a lot more frames, good news is it does work.
One thing I would do is not to have such a deep trough unless you intend to create a very deep swell, the trough in this particular wave does not change over time so your 'sea' surface is never changing and it just dont work like that. It also seems from the size of these 'one segment' that you intend to tile them, two things you have to ensure, that they align proper when laid down and that the last frame of your animation is the same as the first so it loops correctly.
Here is the correct fpe for your current wave.
;header
desc = wave
;ai
aiinit = appear1.fpi
aimain =
aidestroy = disappear1.fpi
;spawn
spawnmax = 0
spawndelay = 0
spawnqty = 0
;orientation
model = wave.x
offx = 0
offy = 0
offz = 0
rotx = 0
roty = 0
rotz = 0
scale = 100
fixnewy = 0
defaultstatic = 0
materialindex = 0
collisionmode = 0
strength = 0
isimmobile = 0
soundset =
soundset1 =
;visualinfo
textured =
effect =
castshadow = 0
;Animationinfo
animmax = 1
anim0 = 0,30
Use the following script to animate your objects.
;Artificial Intelligence Script
;Header
desc = Animate object
;Triggers
:state=0:animate=1,coloff
;End of Script
I like what your trying to do here, good luck with it.