Have a look at the structure of the watermorph files in the R4/data/watermorph folder.
The watermorph are made up of up to (i think there is a limit) 64 points or blobs.
Each point has a x,y,z location of the "blob" and also teh size of the size to.
The x,y,z points are roughly in the range -1 to 1 in 3D space - although you can go a little outside this range it may have unexpected result depending on what "size" of the waterworphs skins (watermorph variables: size[5]) as defined in a per scene basis.
Each of the up to 64 blob has a size variable average size in most of the pointmorphs is 1 (all the ones initially created had a size of 1 and AFAIK only I have created any other with sizes other than 1) and a small size of say 0.5 might be not be viewable when alone (e.g. not contact to any other watermorph "blobs" ) depending on the overall watermorph size.
I hope that explains a little more about watermorphs.
