[Belgarius]

Same issues here as the others. Also seems to effect spell effects, at least those of weapons, for instance, on my DK, the effect on his sword is located downwards from the actual weapon, but only when facing water from a certain distance... weird. Turning away from the water returns the weapon effect to it's proper location.

Multisampling at 1X
Happens both with DX9 and DX11
MSI Radeon 5770 Hawk (mild factory OC'd card)
Running on PC

Edited to add:

I've only noticed this happening in Cata areas, specifically, Uldum. I can't recall seeing it in Twilight Highlands, but admittedly, haven't spent much time there yet. This doesn't appear in any of the old world areas with large bodies of water that I have discovered to date, nor in Outland, or Northrend. Seems to be localized from my observations to Uldum in particular, if that has any bearing.

Also, I have noticed another peculiar thing, along with the weapon effects shifting. If I move my camera downwards, the effect goes back where it belongs, but... the circles that appear underneath NPCs also appear and disappear along with the effect, as do floor items, such as rugs and ground clutter. This also happens when shifiting viiews right and left.

To my untrained mind, it does look as though something has changed with the way the viewport is being rendered, and my guess is that it is (at least for me) limited to the Uldum areas. Pretty much all bodies of water, as well as the rivers are being affected by this.