using the oceanator brush for some reason isnt behaving
expecting it to turn the land upside down and fill it water, instead just makes a giant hole to y 9 no matter where you use it
created some images:
https://www.dropbox.com/s/d9e7o4x6lwh6shv/2012-10-29_16.14.10.png
https://www.dropbox.com/s/ayxdk9ksxspfx3y/2012-10-29_16.14.25.png

theres also that old issue where the water level is one higher than the current terrain generator

Confirmed.

Is the water level correct? It seems like it places the water one unit too high.

water level was changed when the new 1.0 terrain generator was introduced but that isnt my inital problem, its the fact its not turning the land upside down like its suppost to, it behaved properly before the latest build on voxel update

I already fixed your original issue. I will commit the code in a few minutes and our Jenkins build server should also build a new (experimental) version of Sniper then.