Why yes, those ARE real-time reflections on the water ^_^. I have to render the map in two different passes now (render the layer below the water, the water layer, the object reflections, and then all of the layers above the water.) Also, each map requires at least two layers now - below the water and above the water.
Ok, the shit isn't done, but it's pretty damn close. I'd finish it, but I have to work later today (2:30, so going to bed now will give me a good amount of sleep.)
I might need to modify my sprite class before the end. The way I have it setup is going to slow things down too much methinks. I think when you create the sprite I'll store each of the layers and then create another texture that combines all of them. Then I'll recreate the extra texture each time the layers are modified. This will speed things up, fix my shadow problem, and will make things better all around. If I'm going to do that though, I might as well switch the Texture system to the split system I want (it'll make things a lot easier.) I'll do that after the first though, that way I can get this demo finished.
SLEEP TIME KTHXBAI
Changed it to a better shot.