Turning the slider down to high was a temporary fix. If you read further down the thread you'll find this ...
Quote from Dex in reply #36 of the "No Wakes" thread (concerning vertical
waves in P3Dv4):
Orbx has issued Vector for P3Dv4. After installing, I went to Kodiak and was plagued with vertical surf. I went to another area and saw them in that location. Went to the Orbx site and found the fix. This fixed it for me.
"Please try re-installing the libraries.
You can do this by deleting
ORBX\User Documents\Versions\FTX_AA_ORBXLIBS.TXT
This will update the libraries again without a massive download."
I now have my water setting at Ultra, and my waves are normal.