First, the project details:
HF: 1024x1024 pixels
AM: 32x, tilesize 256, temperate climate
TN: 32x, tilesize 256, no bump
LM: 32x, tilesize 256, no water effects, no bump, and no cast shadows
TX: 32x, tilesize 1024, 8x anti-aliasing
In the sandy underwater parts of the texture there are very noticeable square shaped areas with sharp edges.