Okay guys, I wonder if what I'm about to say is actually possible. It would probably be best for Badspot to answer, since he knows the Torque engine more than any of us.
Okay, here we go.
1) Is it possible to have a separate set of volumetric lighting for underwater?
2) Is it possible, using the water distortion, to allow shadows to be distorted* much like how objects are when reflected off the surface of a pool/when the object's shadow is casted to the pool bottom?
*Both on the surface and on the solid object that the shadow is casted onto beneath the water
