Issue: Looki's Background Offset Shader

Hello,

upon trying to use Looki's Background Offset shader to distort my game background for an "underwater" type effect (like in Nifflas's 'The Great Work') I came across a really big problem:
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it seems to distort my water overlay horribly, making everything behind it blurry regardless of what type of overlay design I use (including different colors).

Here's an image from Nifflas' Game:
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now compare that to this image from the same area, only built in my version of mmf2 and using the exact same overlay/settings:
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any help would be appreciated. I'm pretty sure that it is only something as simple as me having an outdated version, since I got it secondhand.

here's the code for the shader in case it sets off any flags:

<effect>
<name>Background Offset</name>
<description>Offsets the background using the object's texture (Red for X, Green for Y).</description>
<author>Looki</author>
<BackgroundTexture>1</BackgroundTexture>
<parameter>
<name>Width</name>
<variable>width</variable>
<type>float</type>
<value>10</value>
<description>Width of the shift in pixels.</description>
</parameter>
<parameter>
<name>Height</name>
<variable>height</variable>
<type>float</type>
<value>10</value>
<description>Height of the shift in pixels.</description>
</parameter>
</effect>

sampler2D img;
sampler2D bg : register(s1);
float width,height,fPixelWidth,fPixelHeight;


float4 ps_main(in float2 In : TEXCOORD0) : COLOR0
{
	float4 shift = tex2D(img,In);
	float2 off = float2(width*fPixelWidth,height*fPixelHeight);
	off.x *= 2*(shift.r-0.5);
	off.y *= 2*(shift.g-0.5);
	float4 o = tex2D(bg,In+off);
	o += tex2D(bg,In+off+float2(fPixelWidth*0.5,0));
	o += tex2D(bg,In+off+float2(fPixelWidth*-0.5,0));
	o += tex2D(bg,In+off+float2(0,fPixelHeight*0.5));
	o += tex2D(bg,In+off+float2(0,fPixelHeight*-0.5));
	o /= 5;
	return o;
}


technique tech_main { pass P0 { PixelShader  = compile ps_2_0 ps_main(); }}

EDIT: also messes up the waterfalls that use the same effect
EDIT 2: ignore this image

These support forums sure are supportive. I'll keep this in mind.

It's been 4 months.

I didn't even get aknowledged. I had to actively seek someone out via PM to get any feedback, but this issue still hasn't been resolved, and I still have had no other contact. It would have been nice to have someone at least tell me that there is nothing to be done.

I was expecting Looki to look into it. He told me he would in a few days since i messaged him, but that was a long time ago. I posted the topic again here hoping that somebody else would have any knowledge on the matter.