Hmm you are correct on both.
Has the tended flag rule changed recently? (as in since before 2004 changes)

Looks like I confused the issue about replaying from a water hazard.
the point I was trying to make was regarding re-teeing up the ball, not that you couldnt replay the shot from a tee. However it appears you can re-tee it up anyway.
So the only difference between generally losing a ball and losing one in a water hazard is that you can go back as far as you want if you lost it in a water hazard?