sorry bro, i read your pm a while back, but forgot about it.
when going through to clear inbox then saw it.
this looks good for me. i am wishing you could have just sunk the leftmost boat because that extreme distortion is quite unpleasant, just the 5 boats in the middle would be nice.
i am not so familiar with layer masks, what i do is work with layers, but the result seems to be correct, i.e. screen layer on foreground to brighten it up, multiply layer on sky (background) to darken it slightly.. or something to that effect. in any case, the end result looks good for me, so whatever works for you and gives you a nice end result.
this looks like a dull day, maybe try a slightly better (not too good here, something too colorful might spoil the mood here) day to shoot this composition again. in the meantime, you might consider using selective layers to just add saturation to the sky (above the horizon here).. just a slight 5-10 saturation in photoshop cs2 (later versions might vary in terms of strength) should be able to do the trick for me.
you might also consider liquification to handle the vertical distortion somewhat, if you look at the right side of the picture, your reflection isn't matching top to bottom..