hmmm... the blending on the bottom is VERY well done, but the side... tsk tsk. ah well.

Yah =\ i agree, it doesnt look the greatest. I continued it into my pic.. then just couldnt figure out where to go with it. I had a good idea for what to do with the "bricks" from the bottom, but couldnt fit it in with the waves.

The border on the right side doesn't match with what you were given. What you did was kinda cool, but it's a stand-alone tile.

I actually think the hard cut works well. I think that most attempts at a seamless blending would have been ugly...