Yup. Well aware. I actually used the patched version of Transparent Liquids to mitigate this issue instead so it works.

If this is the Community patch, you have to disable the transparent liquid plugin which is a hack specific for the built in textures. Transparent liquids have been enabled in the Community Freeverse Patch without it.

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https://sp.zhabite.com/app/2398490/discussions/0/6765052826991071540/

This link will tell you how to fix the transparent problem when using the Xbox360 texture pack.

Cool!

You can use XBLA textures with transparent liquid off too.