The amphibious transport in generals hovers above the surface, as does the PT boat. Deezire is talking about having boats look more realistic, where the boat is actually in the water rather than above it.
However the PT boat actually already does go below the waterline since the bottom of the model is below the origin and the origin is what is used for the preferred height.
Also, there is the floatupdate module, which is used by the boats to sway around but is not enabled. If you enable it. it makes them able to die by drowning or being swamped.
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